Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
On Tuesday, Jefferies analyst Scott Marks increased the price target for Mondelez International (NASDAQ:MDLZ) shares, raising it from $59.00 to $66.00, while maintaining a Hold rating on the stock. Currently trading at $68.30, the stock has gained 15.15% year-to-date, with a market capitalization of $88.5 billion. Marks noted that Mondelez has been effectively using price-pack-architecture strategies to sustain price points favorable to consumers.
According to Marks, Mondelez’s demand in the U.S. appears to be stronger than many of its competitors. The company’s revenue reached $36.4 billion in the last twelve months, with a healthy gross profit margin of 39.1%. Additionally, consumer demand elasticity in Europe is reportedly low enough to allow retail sales to continue growing at a mid-single-digit percentage rate. This assessment suggests that Mondelez is performing well in different markets despite varying consumer behaviors, supported by its "GOOD" Financial Health rating on InvestingPro.
However, Marks also pointed out potential challenges for Mondelez, particularly concerning input costs. The forecast for cocoa futures remains high, suggesting that Mondelez could face increased input costs in the years 2026 and 2027. As a result of these anticipated higher costs, Marks has adjusted the company’s earnings per share (EPS) estimates downward by approximately 3%.
The price target adjustment by Jefferies reflects a nuanced view of Mondelez’s current market position and future challenges. While the company is navigating the current economic environment successfully, the analyst’s outlook incorporates the potential impact of input costs on future profitability.
Mondelez International has not publicly responded to the revised price target or the analyst’s comments at the time of this report. The company’s stock performance in the coming days may reflect investor reactions to Jefferies’ updated analysis and expectations.
In other recent news, Mondelez International has seen several adjustments to its stock price targets and ratings from major financial firms. Bernstein raised its price target for Mondelez to $81, maintaining an Outperform rating, citing a more favorable outlook for the cocoa market and the company’s strong international presence. Morgan Stanley (NYSE:MS) initiated coverage with an Overweight rating and a price target of $69, highlighting Mondelez’s strategic positioning and potential sales growth in high-growth regions.
JPMorgan also maintained an Overweight rating, raising the price target to $74, reflecting a more optimistic view on currency impacts and aligning with the company’s guidance for the year. Piper Sandler adjusted its price target to $64 from $59, maintaining a Neutral rating and noting mixed factors such as the absence of new Mexican tariffs and weaker U.S. retail momentum.
The firm also increased its previous price target to $59, recognizing stronger pricing in the European Union, which could lead to double-digit gains. These developments indicate a varied but generally positive outlook from analysts, with considerations of market conditions and strategic company positioning playing significant roles in their assessments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.