Analysts maintain a favorable outlook
Most analysts suggest “buys” on Mondelēz (MDLZ) stock, reflecting continued strength in its base business. Mondelēz has managed to increase its organic sales driven by higher pricing and volumes. Meanwhile, Mondelēz’s profit margins have expanded despite heightened cost pressures, which is encouraging.
In comparison, higher input and logistics costs have dragged the margins of most packaged food companies lower.
Mondelēz’s organic sales are expected to benefit from price-restructuring initiatives. Meanwhile, its volume growth in emerging markets could further support its underlying sales growth.
Mondelēz’s gross margin could continue to expand driven by benefits from favorable cocoa costs and cost-saving initiatives. However, increased investments in growth and higher interest costs are expected to hurt the company’s earnings.
Rating and target price
Among the 20 analysts covering Mondelēz stock, 15 analysts have given it “buys,” and five have given it “holds.” Analysts have a target price of $51.94 on Mondelēz, which implies a potential upside of 3.5% based on its closing price of $50.18 on April 22.
Besides Mondelēz, Wall Street has maintained a “buy” on Conagra Brands (CAG) stock. Meanwhile, analysts have “hold” recommendations on the Hershey Company (HSY), the J.M. Smucker Company (SJM), General Mills (GIS), and the Kellogg Company (K).