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Hershey EOD Media Report 3/24/17
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Hershey (HSY) Rumors Churn after Hershey Trust Board Changes; Susquehanna Weighs In and Bumps PT to $119
Mar 24, 2017 | Street Insider
The Hershey (NYSE: HSY) rumor mill was a little glum today after three new appointments to the Hershey Trust Board were announced with ties to central Pennsylvania and/or to the Milton Hershey School. Susquehanna analyst Pablo Zuanic noted that not counting the two that have to step down by end of 2017, this brings the Trust Board to seven members, so six more will be announced in the next 12 months they assume, as per agreement with the AG to bring the Trust board to 13. -
Hershey, Its Controlling Trust Seek New Board Members
Mar 24, 2017 | The Street
By Amanda Schiavo
The Hershey Co. (HSY) and the Trust that controls the confections maker are seeking new board members for both units following a year that included a takeover bid from Oreo cookie maker Mondelez (MDLZ) . -
Susquehanna analyzes developments at Hershey
Mar 24, 2017 | Seeking Alpha
By Clark Schultz
Susquehanna analyst Pablo Zuanic bumps up his price target on Hershey (HSY -0.2%) after factoring in the changes to the company and the board of the controlling trust. -
Daily News Roundup: Israeli Teen Charged in Jewish Center Bomb Threats
Mar 24, 2017 | Chronicle of Philanthropy
Brief discussion of the announcement in The Chronicle of Philanthropy's Daily News Roundup. Relevant portion highlighted below.
Traditional Media Coverage
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Mar 24, 2017 | Street Insider
The Hershey (NYSE: HSY) rumor mill was a little glum today after three new appointments to the Hershey Trust Board were announced with ties to central Pennsylvania and/or to the Milton Hershey School. Susquehanna analyst Pablo Zuanic noted that not counting the two that have to step down by end of 2017, this brings the Trust Board to seven members, so six more will be announced in the next 12 months they assume, as per agreement with the AG to bring the Trust board to 13.
While on the surface these types of “backgrounds” may imply less willingness to sell HSY, Zuanic reiterates that greater and improved governance of the school, and more “financial background” people on the Trust Board may bode well for diversification (eventually).
Further, the analyst highlights the fact that the two newest members of the Trust Board (Brown and Koken), who only joined the Trust in 2016, will be the two replacements at the HSY company BoD (for the Trust representatives on the HSY BoD that have to step down). Zuanic said, this is "interesting to us, as it dilutes the Trust influence on the HSY BoD (notwithstanding the fact that the Trust controls more than 80% of the shareholder votes)."
He sees is all encouraging to HSY upside. However, they would not expect the new Trust to make such a momentous decision (diversification) until 2019 at the earliest.
"In the meantime, HSY shares trade at 10% premium to peers (22.2x 1yF PE), which in our view captures the near/medium term upside (a better innovation cycle; more aggressive profit margin targets; M&A optionality)," he comments. "Definitely not a stock to short given these various tailwinds despite the premium, but we would not see HSY outperforming the peer group in the year ahead (YTD HSY is up 5% vs. +6% for S5CONS and 5% for SPX)."
Susquehanna raised its price target on HSY to $119.00 (from $116.00) while maintaining a Neutral rating.
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Hershey, Its Controlling Trust Seek New Board Members
Mar 24, 2017 | The Street
By Amanda Schiavo
The Hershey Co. (HSY) and the Trust that controls the confections maker are seeking new board members for both units following a year that included a takeover bid from Oreo cookie maker Mondelez (MDLZ).
Hershey refused a $23 billion bid from Mondelez last summer, the Trust has the power to veto deals, and eventually board members from both the Trust and the main company left.
Among the additions coming to the Trust is retired Goldman Sachs partner James Katzman, Reuters reports.
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Susquehanna analyzes developments at Hershey
Mar 24, 2017 | Seeking Alpha
By Clark Schultz
Susquehanna analyst Pablo Zuanic bumps up his price target on Hershey (HSY -0.2%) after factoring in the changes to the company and the board of the controlling trust.
We would not expect the new trust to make such a momentous decision (diversification) until 2019 at the earliest," notes Zuanic.
"In the meantime, HSY shares trade at 10% premium to peers (22.2x 1yF PE), which in our view captures the near/medium term upside (a better innovation cycle; more aggressive profit margin targets; M&A optionality). Definitely not a stock to short given these various tailwinds despite the premium, but we would not see HSY outperforming the peer group in the year ahead," he adds.
Susquehanna has a Neutral rating and $119 price target on Hershey.
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Daily News Roundup: Israeli Teen Charged in Jewish Center Bomb Threats
Mar 24, 2017 | Chronicle of Philanthropy
Jewish Nonprofits Relieved and Anguished as Bomb-Scare Suspect Arrested: A 19-year-old man with U.S. and Israeli citizenship has been charged with perpetrating a wave of bomb threats targeting American Jewish nonprofits, reports The Washington Post. The leader of the Jewish Federations of North America said it was "heartbreaking" to learn that the prime suspect is Jewish.
Controversial Hershey Trust Adds Three to Board: The $12.5-billion charity that operates a Pennsylvania school for poor children said the new members bring a "mosaic" of skills and experience, The Philadelphia Inquirer writes. Critics of the scandal-battered trust assailed it for offering compensation of more than $1 million over each member's 10-year term and bypassing candidates who pledged to serve without pay.
Mass. Lawmaker Proposes Taxing High-Paying Nonprofits: State Rep. David Nangle, whose proposal last year to impose taxes on some nonprofit-owned property failed amid fears that it would hurt low-budget charities, filed a revised bill that would levy only organizations where the five best-compensated employees collectively receive more than $2.5 million a year, reports The Boston Globe.
Ill. Supreme Court Maintains Law Keeping Nonprofit Hospitals Tax-Exempt: Justices voided on procedural grounds a lower-court ruling that a 2012 state measure on the issue was unconstitutional, the Chicago Tribune writes. The Supreme Court did not address the constitutionality of the law, under which hospitals remain exempt if the value of their charitable services exceeds their would-be tax liability, but ordered the lower court to reconsider the case.
30-Year Head of Major Jewish Federation Stepping Down: Barry Shrage, the president of Combined Jewish Philanthropies of Greater Boston since 1987, announced he will retire next year, The Boston Globe writes. Mr. Shrage is credited with raising more than $1 billion for Jewish causes during his tenure at one of Massachusetts's largest charitable institutions.
Gates Foundation Launches Open-Access Venture for Research: Following up on its decision to make freely available papers and data sets generated by scientific research it funded, the Bill & Melinda Gates Foundation announced plans to establish its own publishing platform to speedily distribute such work at no charge, the journal Nature reports.
Court Ruling Imperils Barry Diller's NYC Pier Project: A federal judge scuttled permits for Pier 55, a proposed $200 million Hudson River park and performance venue being financed largely by a donation from the billionaire media mogul, siding with opponents who questioned the project's environmental impact, writes The New York Times.
Traditional Media Coverage
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