Hershey Hit With Downgrade as Cocoa Prices Touch Record
- BNP Paribas Exane cuts confectionery maker to neutral
- Cocoa futures climb above $10,000 for the first time ever
Hershey Kisses chocolate candies move along a conveyor at the company's factory in Hershey, Penn.
Photographer: Ryan Collerd/BloombergThis article is for subscribers only.
Hershey Co. was downgraded at BNP Paribas Exane to neutral from outperform on Tuesday, citing the recent surge in cocoa prices that suddenly looks less transitory in nature.
Cocoa futures have more than doubled this year, climbing above $10,000 per ton for the first time ever on Tuesday before erasing gains and taking a breather from a historic rally. The commodity is outperforming the stock market’s highest fliers, including Nvidia Corp. Hershey shares, meanwhile, have gained just 2.4% since the start of January, underperforming the S&P 500 Index and the large-cap consumer staples index.