Citigroup initiated coverage of the chocolate manufacturer with a "buy" rating and a $172 price target
The shares of Hershey Co (NYSE:CHWY) are up 0.6% at $150.60 this morning, after Citigroup initiated coverage with a "buy" rating and a $172 price target. The analyst in coverage said that while the chocolate manufacturer's sales have been pressured by the coronavirus pandemic, the equity still has significant potential for growth in the future.
This is set to be HSY's eighth win in 10 days, a hot streak that has helped the stock reclaim its year-to-date breakeven level. In the last three months, the shares have gained 10.6%, with support emerging from its ascending 10-day moving average.
Analysts were hesitant toward the security coming into today, with nine of the 12 in question carrying a tepid "hold" rating, and the remaining three sporting a "strong buy." Meanwhile, the 12-month consensus target price of $150.69 is right in line with current levels. This means there's potential for even more bull notes for HSY in the coming months.
Traders looking to speculate on Hershey stock's next move should consider options. The equity's Schaeffer's Volatility Index (SVI) of 28% sits in the 17th percentile of its annual range, suggesting short-term options are pricing in relatively low volatility expectations. In other words, the stock's near-term options are attractively priced at the moment.