Analysts suggest a “buy”
Among the 21 analysts covering Mondelēz (MDLZ) stock, 16 have given it “buys,” and five have given it “holds.” Analysts’ positive outlook on Mondelēz stock is backed by its consistent growth in organic sales and its margin expansion. Higher volumes and price increases are expected to support the company’s underlying sales in the coming quarters.
Meanwhile, Mondelēz agreed to acquire Perfect Snacks to further strengthen its well-being snacks portfolio, which should support its sales. However, adverse currency rates and tough comparisons are expected to restrict the company’s sales and earnings growth.
Along with Mondelēz, Wall Street also recommends a “buy” on Conagra Brands (CAG) stock in the packaged food space. Meanwhile, analysts have “hold” recommendations on the majority of packaged food companies, including the Kellogg Company (K), the Hershey Company (HSY), the J.M. Smucker Company (SJM), and General Mills (GIS).
Target price indicates minimal upside
Wall Street has a price target of $57.21 on Mondelēz stock, which implies a potential upside of a mere 3.5% based on its closing price of $55.25 on June 21. Mondelēz’s high valuation, low sales growth, and expected earnings growth rate slowdown are expected to limit the upside in its stock.