Evercore ISI Sees 30% Upside, Sets $255 Price Target on Hershey
AMZN•Evercore ISI raised Hershey to outperform with a $255 price target, implying roughly 30% upside as shares trade at 19 times 2027 earnings after an 18% drop since February. The analyst expects summer tentpole events—including the FIFA World Cup, America’s 250th anniversary and a new Hershey movie—to boost confectionery demand and market share.
1. Evercore ISI Upgrade to Outperform
Evercore ISI’s David Palmer upgraded Hershey from in-line to outperform, assigning a $255 price target that suggests nearly 30% share appreciation over the next 12 months. This marks the highest Street forecast and underscores growing confidence in Hershey’s midterm outlook.
2. Recent Share Performance and Valuation
Hershey shares have slid about 18% since a late-February peak, partly due to broader market weakness, and currently trade at roughly 19 times 2027 earnings estimates. Palmer notes that when valuation dips below 20 times forward earnings, the stock historically averages about 20% upside in the following year.
3. Tentpole Events to Drive Sales
Key summer events are expected to accelerate chocolate consumption, with merchandising and innovation tied to the FIFA World Cup and the 250th anniversary of American independence. Palmer also highlights a new Hershey movie set for late November release as an additional catalyst for holiday season demand.
4. Growth Opportunities Beyond Chocolate
Despite recent share-loss pressures from competitors such as Lindt and Ferrero, Hershey is expanding premium offerings and non-chocolate brands. Products like Sour Strips, Jolly Rancher, Dot’s Pretzels and SkinnyPop are positioned to contribute to overall sales growth and diversify revenue streams.
