Multiple Analysts Cut Hershey Price Targets After Q3 Earnings as Cocoa Costs and Consumer Caution Mount

The Hershey Company reported third-quarter 2026 net sales of $3.28 billion, up 3.0% year over year, with adjusted earnings per share of $2.64, a 103.1% increase that beat the Zacks consensus estimate of $2.12. Despite the earnings beat, a wave of analyst actions followed the results as Wall Street focused on rising input costs and weakening consumer demand heading into the holiday season.

TD Cowen downgraded Hershey to Hold from Buy, cutting its price target to $173 from $198, citing concerns over the company's sales outlook. Bank of America, Wells Fargo, Goldman Sachs, and DA Davidson all lowered their price targets, with DA Davidson trimming its target to $170 from $190 on volume decline concerns. Additional cuts came from Barclays, which moved its target to $171 from $178, Deutsche Bank to $159 from $179, and Bernstein to $169 from $201, while Evercore ISI bucked the trend by raising its target to $225 from $210. The average analyst price target stood near $179.47 following the revisions, and HSY shares were trading around $165, up roughly 3% on the day, reflecting some relief from the earnings beat.

The broader concern is a squeeze from both ends: higher cocoa and sugar prices are driving above-average cost inflation, while price-sensitive consumers are cutting back and trading down to smaller candy packages. Candy sales at convenience stores fell 5% in September, and Hershey management acknowledged on its earnings call that the trend has continued into October, calling the final days before Halloween critically important for demand. Management maintained its 2027 sales growth outlook but acknowledged growing risks from freight inflation, higher non-cocoa input costs, and cautious consumers. Hershey's Halloween candy prices have risen more than 70% over the past five years, intensifying the pressure on shoppers.