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Cocoa Crunch, Pricing Woes – Morgan Stanley Flags Hershey’s Bitter Aftertaste, Downgrades Stock

Hershey faces stock downgrade as Morgan Stanley analyst cites concerns over mixed Q4 earnings and bleak midterm outlook amidst cocoa inflation and weakened consumer demand. Analyst Pamela Kaufman predicts input cost inflation and gross margin contraction, leading to lowered EPS estimates for 2025, despite Hershey's proactive measures and investment plans in innovation.

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