Hershey (HSY) Upgraded at Piper Sandler as Cocoa Pressure Eases

Core Insights - The Hershey Company (NYSE:HSY) has been recognized as one of the 13 Best Consumer Staples Dividend Stocks to invest in currently [1] - Piper Sandler upgraded Hershey to Overweight from Neutral, raising the price target to $213 from $193, citing easing cocoa costs and the removal of cocoa tariffs as factors that provide significant flexibility for reinvestment and earnings growth [2] - Hershey raised its full-year sales and profit outlook after reporting stronger-than-expected quarterly results, now expecting 2025 net sales growth of about 3%, up from a previous target of at least 2% [3] Sales and Earnings Performance - Demand for higher-priced chocolates and snacks has remained strong, contributing to management's confidence in the outlook [3] - The company lifted the low end of its adjusted earnings forecast to $5.90 per share from $5.81, supported by an expanded lineup of healthier, zero-sugar products [3] - In North America, Salty Snacks volumes increased by 11% year over year, driven by brands like SkinnyPop and Dot's Pretzels, although prices in that category fell by 1% during the quarter [3] Segment Performance - In the North America Confectionery segment, volumes decreased by 1%, while prices increased by 7%, indicating a more price-driven approach in that area of the business [4] - Hershey operates primarily as a snacks company with three main segments: North America Confectionery, North America Salty Snacks, and International [4]