Street Calls of the Week
On Tuesday, Bernstein analysts, led by Alexia Howard, increased their price target on Mondelez International (NASDAQ:MDLZ) shares to $81 from the previous $69, while keeping an Outperform rating on the stock. The adjustment comes amid a more favorable outlook for the cocoa market and confidence in Mondelez’s strengths, including its international reach and successful history in mergers and acquisitions (M&A).
The analysts are hosting a webinar today to elaborate on their bullish stance for Mondelez. They highlighted the potential for significant gains for the company as cocoa costs begin to decline from recent highs. The company’s strong financial health, rated as GOOD by InvestingPro, with a P/E ratio of 19.66 and impressive YTD returns of 14.1%, supports this optimistic outlook. While prices have not yet stabilized, the trend points to a likely deflation in these costs, which could positively impact Mondelez’s bottom line.
Mondelez’s global presence, notably in emerging markets such as China and India, is seen as a major advantage, providing the company with considerable growth opportunities. This international exposure also offers a degree of protection against risks specific to the United States, such as changes in government policies and tariffs.
The Bernstein team also praised Mondelez’s management for its strong track record of value-accretive acquisitions, which have been identified as a key driver of growth in the food industry. According to the analysts, Mondelez’s strategic M&A moves have consistently added value to the company.
Despite these strengths, Mondelez’s stock is currently trading at a discount compared to the broader market. However, it does command a slight premium on an absolute basis, which the analysts attribute to the recent flight to safety among US market investors. When compared to its US Food industry peers, Mondelez’s slight premium reflects the underlying strength in its management and operations, even in the face of an inflationary environment for cocoa. For deeper insights into Mondelez’s valuation and comprehensive financial analysis, investors can access the detailed Pro Research Report available exclusively on InvestingPro, which covers over 1,400 top US stocks.
In other recent news, Mondelez International reported a 4.3% increase in organic net revenue and a 5.1% rise in adjusted gross profit dollars for 2024, despite high cocoa input costs. At the 2025 Consumer Analyst Group of New York Conference, Mondelez outlined its strategic focus on expanding its cakes and pastries business, which is valued at $2 billion and holds the third-largest global market share. Analysts from TD Cowen raised Mondelez’s stock target to $71, citing benefits from the recent decline in cocoa prices and revising the 2026 earnings per share (EPS) estimate to $3.15. Conversely, Piper Sandler cut the stock target to $56, highlighting uncertainties in cocoa pricing for 2026 and revising the 2025 and 2026 EPS estimates to $2.91 and $3.20, respectively. Mizuho (NYSE:MFG) Securities also lowered the price target to $64, maintaining an Outperform rating, while adjusting EPS estimates for 2025 and 2026 due to cocoa inflation impacts. DA Davidson reduced its price target to $68 but retained a Buy rating, emphasizing Mondelez’s strong brand equity and cost-saving measures. These recent developments reflect the complex interplay of market conditions and strategic initiatives affecting Mondelez International.
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