Hershey (HSY) may slightly underperform expectations in Q4 driven by the international segment, RBC Capital Markets said in an earnings preview on Monday.
"We are positioned below Street expectations for EPS in 2025 but believe the buyside is generally positioned significantly lower," said RBC analysts, including Nik Modi and Chris Peters.
"While HSY is still trading at ~20x 2025E EPS, we believe
the multiple may decline as expectations for 2025/2026 move lower," they said.
The analysts also said Hershey is facing a tough operating environment on the back of rising cocoa prices.
"While earnings expectations for 2025 have continued to decline, the impact on '25 earnings is hard to determine given that the company provides limited detail regarding its hedging programs," they added.
RBC has a sector perform rating on the stock with a price target of $178.
Price: 147.56, Change: -1.69, Percent Change: -1.13
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.