Why most analysts recommend a ‘buy’
Most of the analysts providing ratings on Mondelēz International (MDLZ) stock are maintaining a positive outlook. Mondelēz’s results for the second half of 2017 are expected to gain from innovative product launches. Its recently launched wellness products are also resonating well with consumers, which should help drive sales growth. Expansion of its distribution channel and higher pricing could also supplement the company’s top-line performance.
On the profitability front, Mondelēz is projected to report double-digit growth on a constant currency basis. Increased productivity and cost savings coupled with lower overhead and advertising costs could drive the company’s bottom-line growth. However, soft industry trends and increased input costs are expected to remain a drag.
Rating summary and target price
Analysts are maintaining a consensus score of 2.0 on MDLZ stock on a scale of 1.0 (“strong buy”) to 5.0 (“strong sell”). About 81.0% of the analysts recommend a “buy” for MDLZ stock, and 19.0% have rated it a “sell.” On October 17, 2017, MDLZ stock closed at $41.13, reflecting an implied upside of 19.0% to analysts’ target price of $48.93 per share.
In comparison, most analysts are maintaining a “buy” rating on Conagra Brands (CAG) and Kraft Heinz (KHC) stock. They have a “neutral” stance on Hershey (HSY), General Mills (GIS), and Kellogg (K) stock.