Analysts have lowered their ratings for Hershey Foods stock, saying that the distraction of the proposed sale this summer may have diverted managerial focus from the key goal of promoting turnover as the company heads into the critical Halloween season.
Several analysts on Wall Street have lowered their sales forecasts for the third quarter as they are concerned that the furore surrounding the controversial sale plans may have diluted the company’s focus on its sales strategy.
A firestorm of protest from the local community and politicians led the trust that controls Hershey Foods to abandon its sales plans, but analysts feel nevertheless that damage may have been done.
Hershey, which reports earnings tomorrow (Thursday), may “have had some disruptions from the painful ‘now we sell it, now we don’t’ posture of its largest shareholder, the Milton Hershey Trust,” wrote Bear Stearns analyst Terry Bivens in research released on Tuesday.
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By GlobalData
