UBS Cuts Price Target, Estimates for Lindt & Sprüngli Amid Heatwave Headwinds

07:47 AM EDT, 09/10/2026 (MT Newswires) -- UBS Global Research reduced its price target and earnings estimates for Lindt & Sprüngli (LISN.SW, LISP.SW), citing summer heatwave disruptions and recent average selling price hikes that are weighing on chocolate volumes. "After almost 4-5 years of beating initial guidance and consensus (mainly [price-driven] to pass on rising raw material costs while showing pricing power as the leading chocolate premium brand), we think 2026 is kind of a transition year for Lindt (flattish to mildly growing EBIT y/y) as consumers still digest the last round of ASP increases earlier in the year impacting volume elasticities. Additionally, we wrote about heat wave risks impacting demand for chocolate/ Lindt over summer 2026 (as we could see in recent Nielsen data) and now capture this in our model on high temperatures until beginning September," according to a Wednesday note. As a result, the research firm reduced its full-year 2026 to 2028 EPS forecasts by 1% to 2% and lowered its medium-term sales growth assumptions by 50 basis points to 5.5% on expected weakness in Germany. Analysts also cut the buy-rated stock's price target to 125,000 francs from 137,000 francs. "However, we reiterate our key catalyst view and see 2027E to be sound on the key KPI's volumes (UBSe +5% y/y) and EBIT growth (UBSe +11% y/y), supported by up to CHF500m reinvestment prospects from hedged cocoa beans. Long term, we see Lindt as a structural winner in the industry," UBS wrote.