Hershey On Cusp of 'Negative Expectation Calibration,' Goldman Sachs Says

On Wednesday, Goldman Sachs downgraded shares of Hershey (NYSE: HSY) from Neutral to Sell and lowered the price target from $105 to $90.

Analyst Jason English believes the company is “on the cusp of a negative expectation recalibration” after being on a multi-year beat-and-raise cycle “on the back of above-trend North American chocolate gains, productivity realization, and cost relief.”

“Domestic momentum is fading as categories slow and market share losses persist on reinvigorated competition,” according to English.

The stock is priced for perfection, and “any shortfall could be painful for shareholders,” said the analyst.

The stock is down 2.6 percent to $99.09 following the downgrade. Shares are still up 185 percent since the beginning of 2009.