Buy Hershey On Any Post-Earnings Pullback, Says Credit Suisse

Credit Suisse’s Robert Moskow and his team lowered their revenue estimates for the packaged food stocks they cover Thursday, although they think investors should buy Hershey (HSY) on any pullback in the stock.

Moskow lowered his sales estimates for Hershey, Kraft Heinz (KHC), and Pinnacle Foods (PF) slightly below consensus estimates, reflecting his concern about the broad slowdown in consumption for branded foods. Nonetheless, he reiterated and Outperform rating on all three, as he thinks that they have enough wiggle room in their forward guidance to meet their earnings forecasts in the next year, and have strong enough competitive advantages to weather a difficult operating environment.
Source: Barrons

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