Analyst Robert Moskow from TD Cowen maintained a Buy rating on Mondelez International and decreased the price target to $72.00 from $75.00.
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Robert Moskow has given his Buy rating due to a combination of factors influencing Mondelez International’s future performance. Despite lowering the price target to $72 from the previous $75, Moskow maintains a positive outlook for the company, expecting it to return to its growth algorithm of 3-5% sales and high single-digit EPS growth by 2026. This optimism is partly driven by anticipated reductions in cocoa input costs, which should help alleviate some of the current pressures on the company’s shares.
In the short term, Mondelez faces challenges such as decreased consumer spending in North America, particularly in the biscuits category, and retailer destocking. Additionally, in Europe, the company is experiencing significant consumer elasticity in the chocolate category due to increased retail prices and competition. However, Moskow believes that strategic adjustments, such as increasing discounts and selective price increases, will positively impact sales and profits in the coming quarters, supporting the Buy rating.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $69.00 price target.