DA Davidson raised its price objective on Hershey (NYSE:HSY) to $207.00 from $185.00, while keeping a Neutral rating on the chocolate maker’s shares. The stock is trading at $193.92 and has returned 34.76% over the past year, according to InvestingPro data.
The price-target increase arrives ahead of Hershey’s fourth quarter 2025 results and initial fiscal year 2026 guidance. In its note, DA Davidson highlighted two primary tailwinds: resolution of tariffs that had affected the company and the onset of cocoa deflation, both of which the firm views as positive forces for Hershey’s margin profile.
The research house also flagged early elasticity reads that it describes as encouraging. Those early signals, DA Davidson wrote, could open the door to upward revisions for fiscal year 2027 earnings as Hershey’s earnings power restores. Despite that potential, the firm did not move to a more positive rating.
DA Davidson explained its Neutral stance by pointing to what it called an already elevated valuation. The firm suggested that prospective earnings improvements appear to be largely reflected in current absolute and relative multiples, which it said are nearer peak levels.
Beyond valuation, the firm underscored ongoing uncertainties. It cited unclear trends in consumer health and behavior and competitive dynamics that remain difficult to parse. DA Davidson also noted that Hershey faces a tough year-over-year comparison after prior periods that benefited from a longer Easter season, strong innovation, and effective convenience store execution.
Other broker activity has clustered around similar themes, with analysts reevaluating Hershey as cocoa-cost dynamics shift:
- Piper Sandler upgraded Hershey to Overweight and raised its price target to $213.00, pointing to relief from cocoa costs and the removal of cocoa tariffs as sources of flexibility for growth and higher earnings.
- Morgan Stanley also moved to Overweight and lifted its target to $211.00, citing expectations of accelerating earnings per share growth.
- Wells Fargo upgraded Hershey to Equal Weight and set a $182.00 target after assessing the company’s margin outlook amid anticipated cocoa price relief.
- Bernstein kept an Outperform rating with a price target of $84.00 despite projecting rising cocoa costs over the next few years.
- In a separate note, Piper Sandler had earlier increased its Hershey target to $193.00 while maintaining a Neutral rating, highlighting Hershey’s resilience in sustaining top-line momentum amid various headwinds.
Collectively, these analyst moves reflect a market in which shifts in commodity costs and tariff policy are changing the calculus for Hershey’s profitability. While several firms have upgraded their ratings and lifted price targets on the expectation of cocoa-cost relief, DA Davidson’s Neutral view underscores that valuation and demand-side uncertainties still temper a fully bullish stance.
Investors should also be aware that Hershey’s earnings report is scheduled for February 5 - just three days away - making it a near-term catalyst for any reassessment of estimates and multiples.
Recent analyst commentary emphasizes the interaction between commodity cost dynamics, tariff developments, and Hershey’s strategic positioning and margin management. Analysts diverge on the magnitude and timing of benefits from lower cocoa prices and tariff removal, producing a range of price targets and ratings that reflect differing risk-reward views.
In sum, DA Davidson’s raise to a $207.00 price target signals recognition of improving input-cost dynamics for Hershey, but the firm’s Neutral rating highlights the limits of that optimism in the face of high current multiples and uncertainties on the demand and competitive fronts.