Mondelez price target lowered to $88 from $89 at Bernstein

Bernstein lowered the firm’s price target on Mondelez to $88 from $89 and keeps an Outperform rating on the shares following quarterly results. Management guided to an organic sales growth increase of “towards the top end of 3% – 5%” vs. consensus of 6.6%. This shortfall was likely driven by management comments last quarter that 2024 would be an above algorithm year on the top line, especially on chocolate in Europe. However, the offset here is that the company is transitioning to the “capped pricing” approach for Argentina used by other global CPG companies, Bernstein says. Overall, despite some near-term snags, Mondelez is still delivering the goods, the firm argues.