Mondelez International, Inc. (MDLZ), a Chicago-based global snacks company with a market cap of $95.9 billion, operates across six continents and offers a diverse range of snack food and beverage products. Teaming up with Post Consumer Brands, they have also introduced new breakfast cereals inspired by cookies.
Shares of the multinational confectionery have significantly underperformed the broader market over the past 52 weeks. MDLZ has declined 8.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.2%. In 2024, shares of MDLZ are down 1.7%, compared to SPX's 9.5% gains on a YTD basis.
Zooming in further, MDLZ also lagged behind the S&P 500 Consumer Staples Sector SPDR's (XLP) 1.3% gains over the past 52 weeks and a 7.8% rise on a YTD basis.
MDLZ stock dropped after its Q1 earnings results on April 30 despite beating revenue and EPS expectations and maintaining full-year guidance. Sales volume declined by 2.1%, reflecting potential growth worries amid high investor expectations and heightened concerns.
Moreover, surging cocoa prices have hit Mondelez hard, squeezing profit margins and investor confidence, resulting in a decline in share prices for the major chocolate producer.
For the current fiscal year, ending in December, analysts expect MDLZ’s EPS to grow by 9.7% to $3.50 on a diluted basis. The company has consistently exceeded consensus estimates, surpassing expectations in each of the last four quarters.
Among the 21 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 18 “Strong Buy” ratings, two “Moderate Buys,” and one “Hold.”
This configuration is slightly less bullish than three months before, with 19 analysts suggesting a "Strong Buy" rating.
On May 1, Sanford C. Bernstein maintained an "Outperform" rating on the stock and raised its price target from $88 to $90, which is also the Street-high target price, which implies a potential upside of 26.4% from the current price levels.
The mean price target of $81.25 represents a premium of 14.1% to MDLZ's current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
