Analysts remain upbeat
Most of the analysts providing recommendations for Mondelēz International (MDLZ) stock maintain a positive view. Mondelēz maintained its sales growth momentum in 4Q17 due to higher pricing and an improvement in volumes. However, weakness in the gum and candy category remained a drag. Its bottom line grew in the double-digits due to higher productivity and cost savings.
The company expects to generate improved sales in the coming quarters due to strength in emerging markets and continued growth in its power brands. Its bottom line is projected to mark double-digit growth in 2018 from improvement in volumes, higher pricing, and incremental cost and productivity savings.
Rating summary and price target
Of the 22 analysts providing ratings for Mondelēz stock, 82% suggest a “buy,” and 18% recommend a “hold.” Analysts are suggesting a price target of $49.60 per share for MDLZ stock, which represents an upside potential of 11.7% from its closing price of $44.40 on January 31, 2018. Morgan Stanley increased its target price on MDLZ stock to $50 from $49 after the company’s 4Q17 results and healthy guidance.
Most analysts are also staying positive on Conagra Brands (CAG) and Kraft Heinz (KHC) in the packaged food manufacturing sector. They’re staying neutral on the prospects of JM Smucker (SJM), Kellogg (K), Hershey (HSY), and General Mills (GIS).