Why Hershey (HSY) Stock Is Retreating Today

NEW YORK (TheStreet) -- Shares of Hershey Co. (HSY) are falling -2.30% to $92.48 on heavy trading volume on Wednesday, due to a ratings downgrade, an increase in prices, and weak guidance.

This morning Hershey was downgraded to "neutral" from "outperform" at Credit Suisse (CS), due to the company's weak 2014 second quarter guidance. Credit Suisse also cut its price target on the stock to $101 from $108.

Hershey is expecting its second quarter net sales to increase 4%, below the company's previous forecast of 5% to 7%.

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Earnings per diluted share are expected to be in line with Hershey's previous guidance between 75 cents and 77 cents.

Additionally, the chocolate and sugar confectionery announced an increase in wholesale prices across the majority of its U.S., Puerto Rico, and export portfolio.

Separately, TheStreet Ratings team rates HERSHEY CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate HERSHEY CO (HSY) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, growth in earnings per share, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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