Berenberg raises Mondelez stock target to $77, maintains buy rating

Published 23/04/2025, 11:20
Berenberg raises Mondelez stock target to $77, maintains buy rating

On Wednesday, Berenberg analysts adjusted their outlook on Mondelez International (NASDAQ:MDLZ), increasing the price target to $77 from the previous $70 while sustaining a Buy rating on the stock. Currently trading at $68.29, the $88.47 billion market cap company has seen a strong 15.13% YTD return. This revision comes ahead of the company’s first-quarter earnings report for 2025, which is scheduled to be released after the market closes on April 29. According to InvestingPro, analyst targets range from $60 to $81, with a consensus recommendation of 1.86 (Buy).

The analysts noted a "relatively soft start to the year," citing lower-than-expected grindings figures and a trend of retailer destocking in the United States, a situation that has been indicated by several companies in recent weeks. Despite these factors, Berenberg is optimistic about Mondelez’s performance, which is supported by the company’s "GOOD" Financial Health Score of 2.83 on InvestingPro.

The firm’s 2025 earnings per share (EPS) forecasts have been increased by 1.1%. This is attributed to a revised organic growth forecast, now set at 4.9%, down from the previously projected 5.6%. However, this lower growth expectation has been more than compensated for by a reduced forecast for foreign exchange (FX) headwinds, which are now anticipated to be 1% instead of 3%.

The price target uplift to $77 is also supported by Berenberg’s updated discounted cash flow (DCF) analysis. In this assessment, the risk-free rate has been lowered to 4.4%, a slight decrease from the former rate of 4.5%. This change in the risk-free rate is another factor that contributes to the increased price target for Mondelez stock.

Investors and market watchers will be looking forward to Mondelez’s upcoming earnings report to see how these forecast adjustments align with the company’s actual performance in the first quarter of 2025.

In other recent news, Mondelez International has seen several adjustments to its stock price targets and analyst ratings. Jefferies analyst Scott Marks increased Mondelez’s price target to $66 while maintaining a Hold rating, noting the company’s effective pricing strategies and strong U.S. demand, though he highlighted potential challenges due to high cocoa futures impacting future input costs. JPMorgan raised its price target to $74, maintaining an Overweight rating and aligning its earnings projections more closely with Mondelez’s guidance, despite concerns about U.S. category trends and inventory reductions. Piper Sandler adjusted its price target to $64 from $59, maintaining a Neutral rating, and cited the risk of potential tariff changes and weaker U.S. retail momentum as influencing factors. The firm also increased its 2026 earnings per share estimate to $3.35 due to anticipated stronger EU pricing. Additionally, Morgan Stanley (NYSE:MS) initiated coverage with an Overweight rating and a $69 price target, expressing confidence in Mondelez’s growth prospects and strategic positioning in high-growth regions. These developments reflect varied perspectives from analysts on Mondelez’s market performance and future challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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