Hershey Company (NYSE:HSY, ETR:HSY) shares gained more than 3% to about $192 in midday trading on Tuesday after Goldman Sachs upgraded its rating on the chocolate maker’s stock to ‘Buy’ from ‘Sell.’
The investment bank also lifted its target price on Hershey to $222 per share from $170, citing an improved outlook and the risks now being fully priced into the stock.
The new target price implies more than 19% potential upside from Monday’s closing price.
“After multiple guidance reductions over the past year, we now see a compelling risk/reward set-up for the stock, with cost pressures (e.g., cocoa, tariffs) largely known and reflected in expectations,” the analysts wrote in a note to clients.
They added that Hershey’s improved market share trends, along with factors such as historically strong pricing power, better shelf placement and a renewed emphasis on marketing and innovation, as key reasons for their optimism.
Goldman expects Hershey’s recent pricing announcements to drive outsized earnings growth in fiscal year 2026.
Hershey shares have climbed about 14% year to date.