Mondelez International’s Strong Market Performance in Western Europe Drives Buy Rating Amid Cocoa Price Challenges

In a report released today, Megan Alexander from Morgan Stanley reiterated a Buy rating on Mondelez International (MDLZ – Research Report), with a price target of $72.00.

Megan Alexander’s rating is based on several positive developments in Mondelez International’s performance, particularly in Western Europe. The company has shown significant improvement in its market share within the region, especially in the chocolate category, which is a crucial part of its business. This increase in market share, by 90 basis points year-over-year in the last eight weeks, contrasts with previous declines and highlights the strength of Mondelez’s brands despite the challenges of rising cocoa prices.
Megan Alexander also notes that the Western European chocolate market has experienced robust growth, with Mondelez outperforming the category with a 17.2% year-over-year increase in the last eight weeks. This growth is primarily driven by price increases, yet the demand elasticity remains minimal, indicating strong pricing power. These factors contribute to a positive outlook for Mondelez’s organic sales growth and earnings potential, even amid rising cocoa costs, supporting the Buy rating for the stock.

According to TipRanks, Alexander is a 3-star analyst with an average return of 4.6% and a 54.12% success rate. Alexander covers the Consumer Cyclical sector, focusing on stocks such as Topgolf Callaway Brands, Hasbro, and Vail Resorts.

In another report released on May 15, Bernstein also maintained a Buy rating on the stock with a $79.00 price target.