Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - Mondelez International (NASDAQ:MDLZ), currently trading at $62.60 and commanding an $81.25 billion market cap, maintained its Neutral rating from UBS on Monday, with the firm keeping its $65.00 price target ahead of the company’s upcoming earnings report. According to InvestingPro data, analyst targets range from $65 to $85, with a consensus recommendation leaning towards Buy.
UBS expects Mondelez to report softer third-quarter results when it announces earnings on Tuesday, October 28, after market close. The investment firm cited "heightened elasticities in key markets" and a "weakening consumer environment in North America" as primary concerns. The company’s revenue growth has slowed to 3.14% in the last twelve months, though it maintains a healthy 32.55% gross profit margin.
The analyst noted these challenges could potentially lead to marginal downward revisions to both top and bottom-line guidance. Despite these concerns, UBS believes these issues are "largely understood/priced in" by the market.
UBS highlighted that cocoa futures have declined 10% over the past month, which could provide some relief for the snack manufacturer. The firm projects a 9% year-over-year EPS growth for Mondelez in fiscal year 2026.
While UBS sees "a path to solid bottom line growth" for next year, it maintains that the risk/reward balance remains neutral at current levels, noting that Mondelez’s valuation sits "above historical levels" amid ongoing "top line uncertainty."
In other recent news, Mondelez International has experienced several analyst adjustments affecting its stock evaluations. DA Davidson lowered its price target for Mondelez to $65, maintaining a Neutral rating, due to ongoing demand pressures that could impact the company’s fiscal year 2025 outlook. Similarly, TD Cowen reduced its price target to $72 from $75, citing market challenges and adjusting its 2025 organic growth estimate to 4.5%, which is below the company’s guidance. Berenberg downgraded Mondelez from Buy to Hold, setting a new price target of $70, while highlighting near-term headwinds. Evercore ISI also lowered its price target to $72, pointing to increased price elasticity in Europe as a factor for reduced sales growth. Meanwhile, Bernstein maintained an Outperform rating with a price target of $88, noting limited downside and potential upside despite cocoa market volatility. These recent developments reflect varied analyst perspectives on Mondelez’s performance and future prospects.
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