Hershey Price Target Raised to $255, Forecasts 30% Rally from FIFA World Cup
HSY•Evercore ISI upgraded Hershey to Outperform with a $255 price target, citing summer events like the FIFA World Cup and America’s 250th anniversary boosting demand. Shares remain 18% below a February peak at about 19 times 2027 earnings, while Hershey expands premium products to regain market share.
1. Hershey Outperform Rating and $255 Target
Evercore ISI raised its recommendation on Hershey to Outperform from in-line and set a new price target of $255, implying nearly 30% upside over the next 12 months. The upgrade cites seasonal demand catalysts such as the FIFA World Cup and America’s 250th anniversary to spur chocolate consumption.
2. Q1 Sales Growth and Margin Pressure
Hershey delivered 10.6% sales growth in Q1 driven by pricing power, though volume declined and margins tightened under cocoa cost inflation and tariff-related expenses. The company is leveraging premium offerings to mitigate commodity and cost pressures.
3. Share Performance and Valuation
Hershey shares fell over 20% during March and April and now trade about 18% below their late-February peak at roughly 19 times 2027 earnings estimates. Historical data shows multiples below 20x have coincided with an average 20% upside in the following year.
4. Innovation and Expansion Strategies
To reclaim market share, Hershey is rolling out premium chocolate innovations and broadening its portfolio into better-for-you snacks with brands like Sour Strips, Jolly Rancher, Lesser Evil, Dot’s Pretzels and SkinnyPop. Management also expects a strong Halloween season and a November Hershey movie release to support second-half growth.
