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Investing.com - Piper Sandler raised its price target on Mondelez International (NASDAQ:MDLZ) to $67.00 from $66.00 on Wednesday, while maintaining a Neutral rating on the snack food giant’s stock. Currently trading at $65.62, the $84.9 billion market cap company shows a "GOOD" financial health score according to InvestingPro analysis, with analyst targets ranging from $67 to $88.
The research firm cited strong European Union pricing, with the segment up approximately 14%, as a positive factor in its analysis. Despite this strength, Piper Sandler identified cocoa costs as the key determinant for Mondelez’s 2026 earnings per share growth. The company maintains a solid P/E ratio of 24.18 and offers a 2.7% dividend yield.
The firm noted that while early indications suggest a potentially good 2025-26 cocoa crop, and Mondelez is hopeful for costs to fall, prices may remain volatile due to low stocks. Demand destruction could bring relief, but Piper Sandler cautioned it’s too early to get a complete picture of 2026 cocoa costs. The company’s revenue grew 0.9% in the last twelve months to $36.46 billion, with InvestingPro’s Fair Value analysis suggesting the stock is currently fairly valued.
Mondelez continues to perform well in emerging markets, particularly India, Brazil, and China, as well as in U.S. value-oriented channels like Club and dollar stores, according to the research note.
Piper Sandler raised its 2025 earnings per share estimate from $3.00 to $3.02 and its 2026 estimate from $3.32 to $3.41, citing several factors including foreign exchange impact (-$0.01), flow-through of second-quarter 2025 earnings beat (+$0.03), and tax rate adjustments to a normalized level of approximately 25% (+$0.07).
In other recent news, Mondelez International reported its second-quarter earnings per share at $0.73, which marked a 12% decline but still exceeded expectations set by Stifel by $0.04. The company’s revenue performance was slightly better than anticipated, and it faced less contraction in operating profit margins due to lower selling, general, and administrative expenses. Following these results, Stifel raised its price target for Mondelez to $76, maintaining a Buy rating. Bernstein SocGen also increased its price target for Mondelez to $88, up from $79, while keeping an Outperform rating, citing the solid nature of the company’s financial results. Mondelez’s strategic pricing initiatives and brand investment focus contributed to a balanced global sales performance, despite consumer anxiety in North America. The company successfully maintained its market share and achieved double-digit growth in emerging markets. These developments highlight Mondelez’s strong positioning in the market amid ongoing challenges.
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