Mizuho Securities Keeps Hold Rating on Hershey Co., Sets $170 Price Target

Mizuho Securities analyst John Baumgartner maintains a Hold rating on The Hershey Company with a $170 price target. Baumgartner has a 4-star rating and a 56.76% success rate, covering Consumer Defensive stocks. The company has a one-year high of $208.03 and a one-year low of $140.13, with an average volume of 1.86M.

Hershey Company (HSY) has been on a streak with its new product launches, and the latest partnership with Costco is set to further boost sales. The company, known for its iconic chocolate brands, has introduced two new candy creations: Reese's Dipped Graham Bears and Hershey's S'mores Popcorn. These products are now available at Costco stores nationwide, with the Reese's Dipped Graham Bears also spotted at BJ's Wholesale Club [1].

Hershey's strategic expansion beyond chocolate is a response to rising cocoa costs and evolving consumer trends. The company has diversified its product portfolio by incorporating ingredients like peanut butter, caramel, and wafers. This shift not only helps meet consumer preferences but also reduces reliance on cocoa, which has become increasingly costly due to global shortages and weather-related disruptions in West Africa [1].

The new product launches are part of Hershey's broader strategy to grow volumes and manage commodity cost volatility. In the second quarter of fiscal 2025, Hershey's net sales were up 26%, with the North America confectionery sector increasing 32%. The company's ability to grow volumes in a challenging environment has been highlighted by CEO Michele Buck, who emphasized the importance of brand and technology investment [2].

Mitsubishi UFJ Asset Management Co. Ltd. recently increased its stake in Hershey by 9.4%, reflecting confidence in the company's strategy. The fund now owns 264,799 shares of Hershey's stock valued at $45.29 million [3]. This increase comes as other institutional investors have also made changes to their positions in the company, with Kennon Green & Company LLC, William Allan Corp, IFM Investors Pty Ltd, Envestnet Portfolio Solutions Inc., and Vontobel Holding Ltd. all increasing their stakes in Hershey [3].

Mizuho Securities analyst John Baumgartner maintains a Hold rating on Hershey with a $170 price target. Baumgartner, with a 4-star rating and a 56.76% success rate, has noted the company's ability to manage costs and drive growth. However, he remains cautious about the potential for cocoa tariff exemptions and the sustainability of nonseasonal chocolate growth [2].

Hershey's latest quarterly earnings beat expectations with an EPS of $1.21 and revenue of $2.61 billion, marking a 26.0% increase compared to the same period last year. The company's ability to maintain volume growth and manage commodity cost volatility will be key markers of success in the coming quarters [2, 3].

References:

[1] https://www.thestreet.com/retail/hershey-teams-up-with-costco-to-make-a-dream-candy-combo
[2] https://finance.yahoo.com/news/5-revealing-analyst-questions-hershey-050024302.html
[3] https://www.marketbeat.com/instant-alerts/filing-mitsubishi-ufj-asset-management-co-ltd-grows-stock-position-in-hershey-company-the-nysehsy-2025-08-10/