Hershey: Tariffs Add A New Dimension Of Risk (Rating Downgrade)

  • Hershey's margins are under sustained pressure, with volume declines, elevated cocoa prices, and new tariffs creating a challenging environment for profitability. Despite strong brands and management, the current stock price reflects overly optimistic expectations for a return to normalcy, prompting my exit. Tariffs could significantly impact Hershey's earnings as outlined by management, adding to existing cost pressures and making the stock less attractive.