Key insights
- Morgan Stanley reiterates an Overweight rating and $71 price target on Mondelez (MDLZ), maintaining it as a Top Pick. The firm cites increased confidence in upside potential versus consensus EPS estimates, driven by resilient organic sales growth and expected cocoa cost deflation. This suggests positive EPS revisions and potential acceleration into H2 2026, with current valuation seen as too low. The news implies a bullish outlook for the consumer staples sector bellwether.
Investing.com - Morgan Stanley reiterated an Overweight rating on Mondelez International stock (NASDAQ:MDLZ) with a $71.00 price target. The firm maintained the company as a Top Pick. The target represents roughly 14% upside from the current price of $62.39, while the stock trades below its InvestingPro Fair Value, suggesting the shares may be undervalued.
Morgan Stanley cited increased confidence in upside potential versus consensus earnings per share estimates. The firm originally moved Mondelez to its Top Pick list in mid-March.
The investment bank pointed to improving visibility for resilient above-consensus organic sales growth even as chocolate pricing tailwinds diminish. Morgan Stanley expects the combination of solid organic sales growth and significant cocoa cost deflation to support positive earnings per share revisions versus consensus. The $80.09 billion company has demonstrated shareholder-friendly policies, with an InvestingPro Tip highlighting that Mondelez has raised its dividend for 12 consecutive years. For deeper insights, investors can access a comprehensive Pro Research Report covering this and 1,400+ other US equities.
The firm anticipates the pace of earnings revisions will likely accelerate into the second half of 2026. Morgan Stanley views current valuation as too low relative to Mondelez’s earnings visibility and long-term growth profile.
The assessment comes despite recent relative stock outperformance for the snack and confectionery company.
In other recent news, Mondelez International announced a regular quarterly dividend of $0.50 per share, payable on July 14, 2026, to shareholders of record as of June 30, 2026. BofA Securities raised its price target for Mondelez to $67, citing strong first-quarter performance in emerging markets, with notable sales growth in India and Brazil. Piper Sandler also increased its price target for Mondelez to $65, adjusting its earnings per share estimates for 2026 and 2027 to $2.95 and $3.33, respectively. Meanwhile, Jefferies has raised its 2026 commodity inflation forecast to 2.1% due to ongoing disruptions from Middle East tensions affecting freight and insurance costs. Barclays analysts suggested that a shift to semi-annual reporting could benefit U.S. packaged food companies, including Mondelez, by reducing short-term pressures. These developments reflect the dynamic environment Mondelez is navigating, with both market challenges and opportunities in emerging markets.
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