NEW YORK (TheStreet) -- Shares of Hershey (HSY) - Get Report are declining 1.50% to $109.30 in late-afternoon trading today after Deutsche Bank upped its price target on the chocolate company's stock to $105 from $91.
The firm maintained its "hold" rating on the stock due to continuing pressure in the U.S. confection and snacks markets.
"Although management is taking logical steps to invest in emerging markets, we are fearful of downside EPS risk given near-term challenges," Deutsche Bank continued in an analyst note.
However, valuation has improved due to Mondelez's (MDLZ) recent $23 billion acquisition offer, the firm added.
Additionally, Hershey is slated to report second quarter earnings before Thursday's market open.
Analysts expect the company to post earnings of 78 cents per share on revenue of $1.61 billion.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate HERSHEY CO as a Buy with a ratings score of B. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: HSY