Morgan Stanley Optimistic on Mondelez's Future
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Yahoo Finance
- Stable Dividend Returns: Mondelez International has demonstrated a strong track record of returning cash to shareholders, with an annual dividend growth rate exceeding 10% over the past five years, which enhances investor confidence.
- Stock Buyback Program: Since 2018, Mondelez has repurchased over $13 billion of its shares, reducing the share count by approximately 15%, a strategy that helps boost earnings per share and attract further investment.
- Cocoa Price Relief: Morgan Stanley raised Mondelez's price target from $64 to $65, citing that the recent decline in cocoa prices will improve earnings per share visibility, although uncertainty around organic sales growth remains.
- Cost Pressure Warning: Despite operating from a position of financial strength, Mondelez has warned that unprecedented cocoa cost inflation could reduce adjusted earnings per share by as much as 15% in 2025, posing a challenge to future profitability.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MDLZ?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on MDLZ
Wall Street analysts forecast MDLZ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MDLZ is 66.82 USD with a low forecast of 62.00 USD and a high forecast of 84.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
13 Buy
5 Hold
0 Sell
Moderate Buy
Current: 57.310
Low
62.00
Averages
66.82
High
84.00
Current: 57.310
Low
62.00
Averages
66.82
High
84.00
About MDLZ
Mondelez International, Inc. is a snack company. The Company’s core business is making and selling chocolate, biscuits and baked snacks. The Company also has additional businesses in adjacent, locally relevant categories including gum and candy, cheese and grocery and powdered beverages. Its portfolio includes global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate’s Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. The Company’s segments include Latin America, AMEA, Europe and North America. It sells its products in over 150 countries and has operations in approximately 80 countries, including 147 principal manufacturing and processing facilities across 46 countries. It sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and other retail food outlets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Morgan Stanley Optimistic on Mondelez's Future
- Stable Dividend Returns: Mondelez International has demonstrated a strong track record of returning cash to shareholders, with an annual dividend growth rate exceeding 10% over the past five years, which enhances investor confidence.
- Stock Buyback Program: Since 2018, Mondelez has repurchased over $13 billion of its shares, reducing the share count by approximately 15%, a strategy that helps boost earnings per share and attract further investment.
- Cocoa Price Relief: Morgan Stanley raised Mondelez's price target from $64 to $65, citing that the recent decline in cocoa prices will improve earnings per share visibility, although uncertainty around organic sales growth remains.
- Cost Pressure Warning: Despite operating from a position of financial strength, Mondelez has warned that unprecedented cocoa cost inflation could reduce adjusted earnings per share by as much as 15% in 2025, posing a challenge to future profitability.
Continue Reading
U.S. Stock Market Eyes Upcoming Earnings Reports
- Earnings Outlook: Next week, earnings reports from tech giants Alphabet and Amazon are highly anticipated, especially after Microsoft's report led to a 10% stock drop despite beating expectations, indicating a shift in investor scrutiny towards profitability and growth metrics.
- Job Cuts and Efficiency: Amazon announced a restructuring that will eliminate 16,000 jobs, adding to the 14,000 cuts made in October, resulting in a 10% reduction in its corporate and tech workforce, with CEO Andy Jassy emphasizing that AI-driven efficiency gains will significantly impact operational costs moving forward.
- Labor Market Insights: A crucial jobs report is set to be released next Friday, alongside the Job Openings and Labor Turnover Survey (JOLTS), providing investors with insights into the labor market, particularly after the Fed indicated an improving economic outlook, which may alter interest rate expectations.
- Government Shutdown Risks: The market is also wary of a potential partial government shutdown, as a planned Senate vote on funding has stalled, despite a strong January performance; this uncertainty could lead to increased volatility, prompting investors to remain cautious in their strategies.
Continue Reading