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Investing.com - Bernstein SocGen Group has reiterated an Outperform rating and $88.00 price target on Mondelez International (NASDAQ:MDLZ) stock, according to a research note published Monday. The target aligns with broader Wall Street sentiment, as InvestingPro data shows analyst targets ranging from $67 to $88, with the stock currently trading at $61.53.
The firm’s analysis focused on the potential earnings per share (EPS) sensitivity based on cocoa prices, concluding there is "limited downside and potentially decent upside" for the snack food manufacturer despite current cocoa market volatility. The $79.64 billion market cap company maintains a FAIR financial health score according to InvestingPro analysis, with a solid dividend yield of 3.24%.
Bernstein’s research suggests a "blue sky scenario" where Mondelez could see EPS rebound to above $4.00 if cocoa prices return to 2023 levels. The firm noted that removing cocoa price fluctuations from the equation would place Mondelez on a high-single-digit EPS growth trajectory. The company’s current P/E ratio stands at 22.22x, with revenue growing at 3.14% over the last twelve months.
The analysis projects that 9% EPS growth from $3.36 in fiscal year 2024 could lead to approximately $4.00 in fiscal year 2026 and potentially $4.35 in fiscal year 2027. With Mondelez’s current price-to-forward-earnings ratio of 18.8x, this scenario implies a potential share price of $82, representing approximately 35% upside over the course of a year.
Bernstein acknowledged that this optimistic outlook depends heavily on "a sharp moderation in cocoa input costs," but characterized the scenario as "fairly attractive when set against relatively low downside" for the stock.
In other recent news, Mondelez International reported its second-quarter earnings for 2025, showcasing resilience in a challenging market environment. The company achieved double-digit growth in emerging markets, despite consumer anxiety in North America, thanks to strategic pricing and brand investment. Stifel responded to Mondelez’s performance by raising its price target to $76.00, maintaining a Buy rating, as the earnings per share of $0.73 exceeded expectations despite a 12% decline.
Bernstein SocGen also increased its price target to $88.00, citing solid results in the second quarter. Piper Sandler raised its price target slightly to $67.00, maintaining a Neutral rating, and highlighted strong European Union pricing as a positive factor, while noting cocoa costs as a future concern. Additionally, JPMorgan assumed coverage with an Overweight rating and a price target of $75.00, emphasizing Mondelez’s global footprint and focus on the snacking category. These recent developments reflect analysts’ varied perspectives on Mondelez’s performance and potential.
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