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On Wednesday, Evercore ISI, an influential financial firm, increased its price target for Mondelez International (NASDAQ:MDLZ) shares from $70.00 to $73.00. The firm maintained its Outperform rating on the stock, signaling confidence in the company’s future performance. Currently trading at $65.65, Mondelez has a market capitalization of $85 billion and has delivered a 10.7% return year-to-date. According to InvestingPro data, analyst targets for the stock range from $63 to $81, with a consensus recommendation of 1.93 (Buy).
The adjustment in the price target comes as Evercore ISI analysts anticipate higher earnings per share (EPS) for 2025 and 2026, citing foreign exchange (FX) benefits and the company’s ability to handle high cocoa costs. The firm’s analysts project that Mondelez can successfully implement pricing strategies in Europe and manage the elevated costs associated with cocoa, a key ingredient in many of the company’s products. InvestingPro data shows the company’s current diluted EPS stands at $2.70, with analysts forecasting EPS of $2.94 for FY2025.
The analysts also noted that if current cocoa futures, which are approximately $8,000 per metric ton for 2026, remain stable, Mondelez could see a year-over-year decrease in costs as existing hedges expire. This scenario is expected to bolster EPS growth for 2026, with Evercore ISI estimating a $3.32 EPS compared to the consensus estimate of $3.24.
The new price target of $73 reflects a price-to-earnings (P/E) multiple of 22 times the estimated 2026 earnings, which falls within Mondelez’s historical P/E range of 17 to 24 times. The analysts justify this multiple by pointing to the company’s continuous multifaceted sales growth drivers that are anticipated to sustain over 4% organic sales growth and the ability to achieve high single-digit EPS growth over time. The company currently trades at a P/E ratio of 19.2, with a solid dividend yield of 2.86% and impressive dividend growth of 10.59% over the last twelve months.
Mondelez International, known for its confectionery, food, and beverage products, has been navigating a complex global market where managing input costs and pricing strategies are crucial for maintaining profitability. The positive outlook from Evercore ISI suggests that the company is well-positioned to overcome these challenges and deliver solid financial performance in the coming years. InvestingPro analysis indicates the company maintains a "GOOD" overall financial health score of 2.7, with particularly strong profitability metrics. Based on InvestingPro’s Fair Value analysis, the stock appears slightly undervalued at current levels. For deeper insights into Mondelez’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Mondelez International reported a 3.1% growth in organic net revenue for the first quarter of 2025, despite facing challenges such as a decline in volume mix and an 18% drop in earnings per share (EPS) in constant currency. The company’s chocolate segment experienced a notable increase of 10.1%, contributing to the overall revenue growth. Mondelez generated $800 million in free cash flow during the quarter. The company reaffirmed its 2025 outlook, projecting approximately 5% revenue growth without any expected impact from foreign currency fluctuations. Analysts noted Mondelez’s strategic pricing execution and successful negotiations in key markets as positive factors. Additionally, Mondelez’s performance in emerging markets showed mixed results, with high single-digit growth in China. The company remains focused on its strategic agenda, including managing cocoa price fluctuations, which could impact demand.
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