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Goldman downgrades Hershey to sell

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Shares of the chocolate maker Hershey Co (NYSE:HSY) are down after receiving a downgrade by Goldman Sachs. The chocolate staple was downgraded from neutral to sell with a price target of $90 a share, $15 below the previous share target level. According to Goldman, Hershey has been living off of cycles of beating estimates and positive rerating’s by analysts, which is inflated the company’s valuation. Goldman believes that those cycles are coming to an end for Hershey. As a result, Goldman lowered their FY14-FY16 EPS estimates by 3% to 6%. The EPS lowering reflects a slowdown in sales and margins.