Goldman Bearish on Hershey, Doubts that Buyout or JV Will Occur

6/3 - "The recent run-up in shares of The Hershey Co. appears to be the result of market speculation that the chocolate and candy company will enter a merger or joint venture...Goldman Sachs analyst Judy Hong has her doubts, qualifying the “market exuberance over potential strategic action as unwarranted.” As a result, she renewed her “sell” rating and US$32 price target on Hershey shares..."

"Ms. Hong does not see any meaningful JV opportunities for the company, which means no additional earnings per share benefit...She also struck a sobering note on the prospects for an impending strategic deal, outlining three major impediments for potential buyers: The Hershey Trust’s unwillingness to relinquish ownership, a lack of global manufacturing infrastructure, and finally, a share price that is currently at a "robust valuation."