JPMorgan assumes coverage of Mondelez stock with Overweight rating

Published 20/08/2025, 09:54
JPMorgan assumes coverage of Mondelez stock with Overweight rating

Investing.com - JPMorgan has assumed coverage on Mondelez International (NASDAQ:MDLZ) with an Overweight rating and a price target of $75.00, down from the previous target of $78.00. Currently trading at $62.66, the stock appears fairly valued according to InvestingPro analysis, with analyst targets ranging from $67 to $88.

The firm expects Mondelez’s volume and organic sales growth to outperform most U.S. food peers over time, citing the company’s global footprint and focus on the snacking category as key advantages. The $80.9 billion market cap company has demonstrated this strength with 3.14% revenue growth over the last twelve months, generating $37.1 billion in revenue with a healthy 32.55% gross margin.

JPMorgan highlighted Mondelez’s strong track record in mergers and acquisitions, noting the company effectively scales acquired businesses through its distribution and manufacturing platforms. InvestingPro data shows the company maintains a solid financial position with an Altman Z-Score of 4.58, indicating strong financial health. Get detailed insights and 12 additional ProTips with an InvestingPro subscription.

The research firm acknowledged that cocoa inflation is currently creating headwinds for Mondelez’s earnings growth but characterized this challenge as temporary.

JPMorgan anticipates growth will soon accelerate, driven by easing inflation based on futures prices and continued pricing actions by the company, which may enhance EPS growth through share repurchases when not pursuing acquisitions.

In other recent news, Mondelez International has garnered attention with several analyst firms adjusting their price targets following its financial performance. Stifel raised its price target for Mondelez to $76 from $73, maintaining a Buy rating after the company’s second-quarter earnings report. Mondelez reported earnings per share of $0.73, which, despite being a 12% decline, surpassed Stifel’s expectations by $0.04, attributed to better-than-expected revenue and reduced operating profit margin contraction. Similarly, Bernstein SocGen increased its price target to $88 from $79, citing "solid" second-quarter 2025 financial results and maintaining an Outperform rating.

Piper Sandler also adjusted its price target for Mondelez, increasing it to $67 from $66, while maintaining a Neutral rating. The firm noted strong European Union pricing as a positive factor, with the segment up approximately 14%, but pointed to cocoa costs as a critical factor for future earnings per share growth. Mondelez’s strategic pricing initiatives and brand investments have contributed to a balanced global sales performance, despite challenges in North America. The company maintained its market share and achieved double-digit growth in emerging markets. These developments reflect Mondelez’s ability to navigate market challenges while maintaining its strategic positioning.

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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