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How Do Analysts Rate Mondelēz International and Peers?

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Analyst coverage

Of the 20 analysts covering Mondelēz International (MDLZ), 14 analysts (70.0%) have issued “buy” recommendations on the stock as of November 22. The stock has been given a “hold” recommendation by 30.0% of the analysts. Analysts have set the stock’s 12-month price target at $49.53 per share, with upside potential of 14.0%.

Mondelēz International is a manufacturer of crackers or biscuits, chocolate, gum, and beverages. It markets its products in 165 countries. The company owns popular brands like Oreo, Ritz, Tang, Chips Ahoy!, Trident, and Cadbury. Notably, the company’s top line has been under pressure due to currency headwinds and challenges in certain key emerging markets.

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Kellogg comparison

Of the 20 analysts covering Kellogg (K) stock, 20.0% have issued “buy” recommendations, while 70.0% have issued a “hold,” and 10.0% have issued a “sell.” Analysts have set the stock’s 12-month price target at $82.35 per share with upside potential of 11.0%. The company reported mixed quarterly results for fiscal 3Q16.

Kellogg’s comparable or adjusted sales fell 2.5% due to the negative effect of foreign exchange and adjusted EPS rose 12.9% due to improvement in profit margins and reduction in tax rate. For fiscal 2016, Kellogg narrowed its projection for sales and expanded it for adjusted EPS (earnings per share) due to the benefit from the lower tax rate in fiscal 3Q16.

Hershey

Out of 18 analysts covering Hershey’s (HSY) stock, 6.0% rated the stock as “buy,” 83.0% rated it as “hold” and 11.0% rated it as “sell.” The 12-month average stock price target for Hershey is $104.20 per share, reflecting upside potential of 7.0%.

Hershey’s sales grew 2.2% in fiscal 3Q16. This growth in sales was negatively impacted by foreign exchange and positively by an increase in volume, product innovation, a reduction in discounts and allowances, and the acquisition of Ripple Brand Collective.

Hershey’s adjusted EPS rose 10.3% in fiscal 3Q16 due to higher sales and lower selling, marketing and administrative expense, and lower effective tax rate. The bottom line also benefited from a lower outstanding share count resulting from share repurchases.

Campbell Soup

For Campbell Soup (CPB), 6.0% of 16 analysts rated the stock as “buy,” while 63.0% rated it as “hold,” and 31.0% rated it as “sell.” Analysts have set the average 12-month stock price target at $58.15 per share with upside potential of 2.0%.

Campbell Soup reported a flat growth in sales due to the positive impact of foreign exchange, partially offset by fall in organic sales by 1%. The company’s adjusted EPS grew 5.3% in fiscal 1Q17.

Notably, Mondelēz International constitutes 2.8% of the Guggenheim S&P 500 Equal Weight Consumer Staples ETF (RHS).

We’ll discuss Mondelēz’s valuation in the next and final part of the series.

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