Hershey: shares up after broker upgrade
(CercleFinance.com) - Shares in Hershey, the US chocolate maker, are up close to 1% on Tuesday after Credit Suisse upgraded the stock from "underperform" to "neutral".
At 11:00, Hershey was trading 0.8% higher at 106.9 dollars, outperforming the S&P 500 index, which was up 0.5%.
In a research note issued this morning, Credit Suisse analysts said the company's investments are beginning to pay off, and raised their target price from 85 dollars to 104 dollars.
"The company has done a better job than we expected of stabilizing its sales trends with investments in packaging, e-commerce, manufacturing capacity, and its new snacking platform," the broker wrote.
"In addition, the consumer shift to online grocery shopping is moving slower than we expected, thus giving Hershey some time to adjust to declining impulse purchase occasions at traditional checkout aisles," it added.
This leads Credit Suisse to think that Hershey is poised for "better growth" in 2019.
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