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Higher cocoa prices will pressure Hershey’s stock, analyst says - MarketWatch

1. Piper Sandler cut HSY rating to underweight due to high cocoa prices. 2. Analyst lowered HSY price target by $23 to $120 based on profit impact. 3. 2026 profit estimate reduced from $8.50 to $7.05, below consensus. 4. Cocoa crop risks a fourth deficit amid adverse weather conditions. 5. HSY has underperformed, dropping 11.1% in 2025 compared to S&P 500 gains.

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FAQ

Why Bearish?

Raising cocoa price concerns leads to lowered profit forecasts, impacting HSY negatively, similar to past instances where commodity price spikes affected margins.

How important is it?

Cocoa price fluctuations directly affect Hershey's operational costs, making this analysis critical for HSY investors.

Why Long Term?

Persistent high cocoa prices could continuously impact HSY profitability in future years, similar to past impacts from volatile commodity costs.

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