Goldman Sachs Upgrades Hershey (HSY) to Buy; $222 Target Implies 19% Upside as 17/24 Analysts Hold

Goldman Sachs just pushed Hershey (NYSE: HSY) up two notches - from sell to buy - and lifted its price target from $170 to $222. That new target implies roughly a 19% premium to Monday's close, a big move for a company many on the Street have been lukewarm on.

The bank's analyst, Leah Jordan, frames the call around a few concrete developments: input-cost pressures such as cocoa and tariffs are largely accounted for in current consensus, recent pricing moves should translate into outsized earnings growth in fiscal 2026, and the company's market share has begun to recover in seasonal items, sweets and mints. Jordan also points to stronger shelf presence and a stepped-up marketing and innovation push as drivers of the improvement.

One operational detail getting bandied about is Hershey's "gold standard planogram" for convenience stores. Jordan expects rollout to reach roughly 60% of c-stores by year-end, up from about 50% now, and she thinks easier comps in the back half of the year will help results.

All that said, most analysts aren't throwing their lot in with Goldman yet. According to LSEG data, 17 of 24 analysts still carry a hold rating on the stock. The Street is clearly split: a single research house's bullish leap versus a broad base remaining cautious.

Market reaction was immediate but measured - shares were up nearly 3% in the premarket following the upgrade. Year-to-date the stock is roughly 9% higher, but it has lagged the broader market's gains.

For traders, the headlines set up a few obvious watching points without prescribing any action. One is whether the pricing announcements actually drive the FY26 upside Goldman models - pricing elasticities will make or break the math. Another is execution on shelf share and promotional cadence; the planogram rollout and marketing cadence are the nuts-and-bolts items that determine whether market-share gains stick. And the street's current positioning - lots of holds - means a single big beat or miss could swing sentiment quickly.

Risk reminders: commodity or tariff shocks, weaker-than-expected consumer response to price increases, or slower c-store adoption would complicate the thesis. On the flip side, stronger realized margins or faster shelf-share recovery would force analysts to reprice estimates.

So the story now is less about surprise headlines and more about execution - can Hershey convert pricing power and retail nudges into durable share gains?