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Investing.com - Piper Sandler reiterated an Overweight rating and $249.00 price target on Hershey (NYSE:HSY) stock, representing roughly 14% upside from the current price of $218.46. The stock trades at a P/E ratio of 49.91, and according to InvestingPro analysis, appears overvalued relative to its Fair Value.
The firm noted that Hershey’s 2026 EPS guidance of 30-35% growth remains strong and could see upside if current favorable elasticities hold, SNAP and GLP-1 impacts remain manageable, and productivity savings exceed expectations. This optimism is shared across Wall Street, with 12 analysts recently revising their earnings estimates upward.
Cocoa costs remain favorable and could drive significant upside to 2027 EPS estimates if pricing continues to hold and cocoa costs stay near current levels. Retail sales growth in the first quarter of 2026 to date reached 6.6%, with pricing and volume dynamics remaining favorable.
The company could resume buybacks if merger and acquisition opportunities do not materialize, which could add $0.30-0.40 or more to 2027 EPS, though this is not yet modeled by the firm.
Piper Sandler maintains its 2026 EPS estimate of $8.40 and 2027 EPS estimate of $9.00 for Hershey, modeling a growing cash build. The stock has delivered strong returns with a 31% gain over the past year and a 20% increase year-to-date.
In other recent news, Hershey’s fourth-quarter earnings report and future guidance have caught the attention of several analyst firms, resulting in multiple price target adjustments. UBS raised its price target for Hershey to $236 from $210, citing stronger-than-expected organic sales growth and improved margins. Stifel also increased its price target to $230 from $195, maintaining a Hold rating, following the company’s earnings report and a 2026 guidance that exceeded expectations. Meanwhile, Bernstein SocGen Group elevated its price target to $250 from $192, noting Hershey’s 2026 earnings per share guidance of 30-35% growth, which is well above the consensus estimate of 12%. DA Davidson raised its price target to $243 from $207, highlighting an "accelerated path to earnings restoration." Piper Sandler reiterated an Overweight rating with a $249 price target, pointing to favorable cocoa cost trends as a potential driver for future earnings. These developments reflect a positive outlook from analysts, with Hershey’s recent performance and future guidance exceeding market expectations.
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