UBS maintained its Buy rating on Lindt & Sprüngli shares on Wednesday even as the stock fell to its lowest level since March 2021, though it trimmed its price target to 125,000 Swiss francs from 130,000 francs.
Lindt & Sprüngli shares closed at 86,000 francs on Tuesday before reopening at 87,600 francs, up 0.8%, on Wednesday. The chocolate maker has come under pressure from rising cocoa prices and a hot summer that weighed on sales volumes and consumer demand.
The responsible analyst continued to view 2026 as a transition year for the company, lowering growth expectations accordingly. Higher cocoa costs forced consumers to pay more for chocolate bars, dampening purchase volumes, while unusually high temperatures further reduced summer demand for chocolate products.
Lindt & Sprüngli has introduced an efficiency and cost-saving program in response to the challenging environment.
Looking ahead to next year, the UBS analyst expressed confidence in a significant volume recovery and forecasted double-digit EBIT growth. Within the confectionery sector, the analyst considers the stock a long-term winner and finds it attractively valued on historical comparisons.
UBS's 125,000-franc target places it at the upper end of analyst estimates. The average price target among analysts tracked by Bloomberg sits at approximately 105,000 francs.
