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Why analysts expect Hershey Stock to fall


Target price indicates an invoice

Wall Street maintains a consensus target price of $ 122.93 per share on Hershey Company (HSY), which represents a potential drawback of 10.9% based on its closing price of $ 137.90 on June 19. The analyst consensus estimates that Hershey's revenue and earnings are expected to improve further year-on-year. However, the growth rate is likely to remain low.

The income of the chocolate producer is expected to remain under pressure in the second quarter of 2019, reflecting the timing of the Easter week. In addition, analysts expect Hershey's top line to rise in low individual numbers in the second half.

Why analysts expect Hershey Stock to fall

Hershey's lower line is expected to benefit from favorable production costs and higher pricing. In addition, lower effective tax rates and share repurchases are expected to mitigate its earnings. However, analysts expect a significant average increase in Hershey's adjusted EPS in 2019 and 2020, which makes its current valuation unsatisfactory and may limit the rise in its shares.

Evaluation summary

Ten of the 13 analysts in Hershey have given it "arrest ratings", three have rated it "buy" and three have given it "sell".

By comparison, Wall Street analysts have a consensus on "buying" a recommendation from the warehouses Mondelēz (MDLZ) and Conagra Brands (CAG). At the same time, analysts have neutral views of General Mills (GIS), Kellogg Company (K) and J.M. Smucker Company (SJM) stock.

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