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On Wednesday, Stifel analysts increased the price target for Mondelez International (NASDAQ:MDLZ) stock to $73.00, up from $70.00, while maintaining a Buy rating. The new target sits within the broader analyst range of $63-$79, with the stock currently trading at $68.56. According to InvestingPro analysis, the stock appears slightly overvalued at current levels. The firm’s decision followed Mondelez’s recent earnings release, which revealed a stronger-than-expected quarter, particularly in terms of margin results. The company, now valued at $88.82 billion, maintains a solid gross profit margin of 32.74% despite the challenges posed by significant cocoa inflation. InvestingPro data shows the company earned an overall Financial Health score of "GOOD," supported by strong profitability metrics.
Mondelez International has reiterated its guidance for 2025, including a projection of a 10% decline in earnings per share (EPS) on a constant currency basis. The company’s forecast is influenced by persistent high cocoa prices, which are expected to impact the business in the fiscal year 2025. Despite these challenges, the company has demonstrated resilience with $36.46 billion in trailing twelve-month revenue and a P/E ratio of 19.92x. The company’s first-quarter performance in 2025 and the alleviation of foreign exchange pressures have led Stifel to revise its EPS estimate for Mondelez upwards to $3.03, an increase of $0.11 from their previous estimate.
The report indicates that while earnings are still affected by high cocoa costs, Mondelez’s chocolate strategy is progressing as planned. The company has successfully executed pricing strategies in Europe without encountering the disruptions experienced in previous years. Furthermore, Mondelez is counteracting the impact of price elasticity through revenue growth management actions.
Stifel anticipates that Mondelez will reinvest any financial outperformance in fiscal year 2025 back into its chocolate business. This reinvestment strategy is aimed at positioning the company for growth in the following fiscal year. With these considerations in mind, Stifel reaffirmed its Buy rating on Mondelez International and adjusted the price target to reflect the improved outlook.
In other recent news, Mondelez International reported first-quarter 2025 earnings with an adjusted earnings per share (EPS) of $0.74, exceeding BofA Securities’ estimate of $0.59. Despite the earnings beat, Mondelez’s organic sales growth of 3.1% fell short of the company’s full-year guidance of around 5%. The company experienced sales shortfalls in three out of four regions, with North America being the most affected, while Europe benefited from significant pricing advantages. Mondelez reaffirmed its 2025 outlook, expecting approximately 5% revenue growth, with no anticipated impact from foreign currency fluctuations. Analysts from BofA Securities raised the stock price target to $75, maintaining a Buy rating, while Evercore ISI increased their target to $73, citing foreign exchange benefits and the company’s ability to manage high cocoa costs. Evercore ISI also projects an EPS of $3.32 for 2026, above the consensus estimate of $3.24, due to anticipated cost reductions as existing hedges expire. Mondelez’s chocolate segment saw a notable 10.1% growth, driven by strategic pricing and minimal disruption, particularly in Europe, which remains the company’s largest market.
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