"Cocoa Prices Surge to Record Highs, Impacting Easter Weekend Treats"

Hershey Co. was downgraded by BNP Paribas Exane to neutral from outperform due to the surge in cocoa prices, which have more than doubled this year and hit a record high. The EU Deforestation Regulation is adding structural costs to the cocoa supply chain, leading to concerns that the inflation may be more long-term than previously thought. Analysts have reduced their earnings estimates for Hershey, and the company has indicated it will use various strategies, including price increases, to combat input inflation. Morgan Stanley also downgraded the stock, citing risks including the significant cocoa inflation.