Stifel upgraded its price objective on Hershey Co. to $230.00 from $195.00 and left its recommendation at Hold. The new target sits essentially in line with the most recent trading level of $230.53, while independent valuation data indicate the shares are trading above estimated fair value and may be viewed as overvalued by some measures within the consumer staples sector.
The stock rallied sharply on the news cycle surrounding the company’s fourth-quarter results and its outlook for 2026, gaining 9.0% on Friday versus a 1.2% decline in the S&P 500. Market reaction followed quarterly results that outpaced analyst expectations and initial guidance for the coming year that exceeded broker forecasts.
Hershey’s initial guidance for 2026 outlines 3% organic sales growth and 32.5% earnings-per-share growth at the midpoint. Those figures were materially above Stifel’s prior assumptions for both top-line and bottom-line performance. In the wake of the company’s announcement, several analysts also adjusted their earnings assumptions upward, with seven analysts recently increasing EPS expectations for the upcoming period.
According to the research note, a combination of stronger-than-anticipated demand elasticity after recent price increases, along with lower cocoa costs and reduced tariff pressures, is supporting management’s forecast for more than 30% EPS expansion. That level of growth was described as well above earlier algorithm-based expectations.
Notwithstanding the upbeat near-term outlook, Hershey is trading at a relatively elevated valuation, with a price-to-earnings ratio of 38.87, a multiple that sits well above industry averages. Stifel signaled a positive bias toward the shares but opted to retain a Hold rating, saying it will monitor elasticities in the chocolate business closely - sustained elasticity at current levels could provide further upside to estimates.
Income-focused investors may note Hershey’s 2.44% dividend yield and the company’s long record of consistent payouts, with a 55-year streak of uninterrupted dividend payments cited as an indication of financial durability.
Hershey’s reported fourth-quarter results showed adjusted earnings per share of $1.71, beating consensus expectations of $1.40, and revenue of $3.09 billion, ahead of the $2.97 billion forecast. Those results and the 2026 outlook prompted a number of brokerages to lift their price targets.
Recent target changes include Bernstein raising its target to $250 and citing guidance that implies 2026 EPS growth of 30-35% versus a consensus estimate of 12%. DA Davidson moved its target to $243 and pointed to an "accelerated path to earnings restoration." UBS established a target of $236 following the fourth-quarter performance and the outlook for 2026, while TD Cowen raised its target to $210, highlighting expectations for margin recovery in 2026 and beyond.
These collective upward target revisions reflect a favorable reception among analysts to Hershey’s reported results and management’s initial 2026 guidance. That said, valuation and the sensitivity of consumer demand to recent price increases remain items market participants will be watching as the company progresses through the year.
Contextual note: Where available, market valuation metrics referenced above reflect commonly followed measures used by analysts to compare peer group multiples and to assess relative fairness of current share prices.