Hershey sweetens as Morgan Stanley turns bullish on accelerating EPS growth

Hershey's HSY.N shares up 2.4% to $186.17 on Mon after Morgan Stanley upgrades chocolate maker to 'overweight' from 'equal-weight', pointing to expected pick-up in EPS growth

HSY shares rising for a 4th-straight session to a two-week high

Brokerage boosts PT from $195 to $211, 16% above stock's last close

With cost pressures easing and topline momentum improving, Morgan Stanley says it sees "a credible multiyear earnings recovery not reflected in consensus"

EPS to rebound sharply beginning in FY26 — well ahead of consensus (+14%) — with the potential for 20%+ growth, followed by sustained double-digit expansion into FY27, Morgan Stanley says, adding there could be additional upside should cocoa prices deflate further

HSY stands out as one of the few names in staples offering above-average visibility into a meaningful EPS acceleration while much of the sector continues to grapple with
volume uncertainty and fading pricing power - Morgan Stanley

Now, of 25 brokerages covering HSY shares, recommendation breakdown is 6 "strong buy" or "buy", 17 "hold" and 2 "sell" ratings; their median PT is $191, per LSEG data

With the move on Mon, shares up ~10% YTD, outpacing 3% advance in S&P 500 Consumer Staples .SPLRCS