Morgan Stanley analysts upgraded Hershey Foods stock from “Equal Weight” to “Overweight,” citing a potential comeback. Hershey, dominating the confectionery sector, operates globally with iconic brands. Despite stock growth, Hershey raised prices due to cocoa costs. The company reported exceeding Q3 expectations, but analysts are cautious about future earnings.

Hershey reported a 6.5% increase in net sales in Q3, driven by North America Confectionery growth from price hikes. Other segments saw volume increases, but overall segment income declined. The company expects 3% net sales growth for 2025, with adjusted EPS projected to decrease significantly. Analysts are wary of Hershey’s future EPS trajectory.

While Morgan Stanley is bullish on Hershey, other Wall Street analysts have mixed views. Stifel Nicolaus reaffirmed a “Hold” rating, and Jefferies resumed coverage with caution. The consensus rating is “Hold” with a $191.32 price target. Despite some recovery, Hershey faces margin declines amid input cost pressures.

Investors are advised to observe Hershey due to margin declines and neutral consensus ratings. Analysts have mixed views on the stock, with a majority rating it a “Hold.” The Street-high price target of $220 indicates 18% potential upside from current levels. Analysts remain cautious about Hershey’s stock.

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