{
  "id": 17198203,
  "title": "TD Cowen downgrades Hershey stock rating on sales outlook concerns",
  "url": "https://urgent.news/2026/10/30/td-cowen-downgrades-hershey-stock-rating-on-sales-outlook-concerns",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-30T08:12:52.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/analyst-ratings/td-cowen-downgrades-hershey-stock-rating-on-sales-outlook-concerns-93CH-4985993"
  },
  "original_language": "en",
  "account": "TD Cowen has reduced its rating on Hershey stock to \"Hold\" from \"Buy\" due to concerns about the company's sales outlook. The firm has also lowered its price target to $173 from $198. The downgrade stems from management guidance predicting 2% to 4% organic sales growth for 2027, with revised earnings per share expectations now in the low double digits rather than the prior 15% to 20% range. TD Cowen's analysis cites weaker category trends, market share losses, and declining volume as key factors. The stock is currently trading at $160.28, near its 52-week low of $156.16 and down 33% from its 52-week high of $239.48. Seven analysts have revised their earnings estimates downward for the upcoming period, further reinforcing the cautious sentiment. Hershey reported Q3 2026 results with organic sales up 0.8% but volume down 10%. The company warned of softer consumer spending, especially in convenience stores that make up 15% to 20% of sales, and higher freight and logistics costs. TD Cowen's tracking data shows Hershey's chocolate market share fell 106 basis points in Q3 2026, with year-to-date share down 154 basis points, a cumulative decline of 286 basis points over three years as smaller competitors like Lindt, Unreal, and Tony's gain market share. Despite these near-term challenges, Hershey expects volume trends to improve sequentially but remain negative for the full year in 2027. The firm anticipates gross margin expansion from favorable cocoa hedges. However, the stock is still seen as potentially undervalued at current levels, with a 3.62% dividend yield and a P/E ratio of 21.93. Investors can find more detailed information in Hershey's Pro Research Report. Meanwhile, The Hershey Company reported Q3 2026 earnings that beat estimates, with adjusted EPS of $2.64 versus $2.11 projected, and revenue of $3.28 billion against $3.25 billion expected. Despite these positive results, there was a decline in volume and pricing challenges leading to a cautious outlook for the remainder of the year.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}