BUZZ-Hershey down after brokerages cut PT on cocoa price inflation

Updates

Shares of chocolate maker Hershey HSY.N down as much as 3.2% at $140.13 at a more than four-year low in early market trade

The fall comes after peer Mondelez MDLZ.O forecast a bigger-than-estimated drop in its annual profit after market close on Tuesday, on pressures from surging cocoa prices caused by a fall in its global supply

Shares of MDLZ down as much as 3.9% at $53.95

Brokerage TD Cowen cuts PT on HSY to $133 from $172

Brokerage expects even bigger decline in profit for HSY due to its higher exposure to chocolate-based products

Sees HSY raising prices over the next 12 months to offset impact of cocoa inflation, compared with its "less aggressive" approach to pricing now vs MDLZ

*Brokerage Wells Fargo also cuts PT on stock to $125 from $140

HSY is set to report Q4 results on Thursday

Three of 26 brokerages rate the stock "buy" or higher, 17 "hold" and 6 "sell" or lower; median PT of $68.50 - LSEG

HSY fell ~9% in 2024