Bank of America Lowers Mondelez International Price Target to $62

Mondelez International (NASDAQ: MDLZ) has experienced a revision in its stock price target, with analysts at Bank of America reducing their estimate from $69.00 to $62.00 in a report released on April 11, 2024. Despite this adjustment, the brokerage maintains a “buy” rating on the stock, indicating a potential upside of approximately 12.61% from its current trading price.

Revisions from Other Analysts

This adjustment by Bank of America is part of a broader trend among market analysts. On December 11, 2023, Morgan Stanley lowered its target price for Mondelez from $68.00 to $64.00, also assigning an “overweight” rating. In contrast, Weiss Ratings reaffirmed a “hold (c)” rating on October 14, 2023, while Wells Fargo & Company adjusted its price objective on October 29, 2023, from $74.00 to $72.00, maintaining an “overweight” stance.

Additionally, Barclays revised its target from $71.00 to $67.00 on October 30, 2023, and DA Davidson lowered its target from $65.00 to $62.00 on November 10, 2023, with a “neutral” rating. Overall, fourteen analysts currently rate Mondelez as a buy, seven have issued hold ratings, and one has given it a sell rating. According to data from MarketBeat.com, the consensus rating is “Moderate Buy,” with an average target price of $67.58.

Recent Financial Performance

Mondelez recently reported its earnings on April 11, 2024, posting earnings per share of $0.66 for the quarter, alongside a revenue of $7.30 billion. The company demonstrated a return on equity of 14.16% and a net margin of 9.38%. Analysts forecast that Mondelez will achieve an earnings per share of $2.90 for the current year, reflecting steady growth potential despite the recent price target adjustments.

Institutional investors have been actively trading Mondelez shares, with notable increases in holdings. For example, AIA Group Ltd boosted its stake by 40.6% in the third quarter, now owning 91,688 shares valued at approximately $5.73 million. Other institutions, such as Saranac Partners Ltd and Allworth Financial LP, have also made significant investments, indicating strong institutional confidence in the company. Currently, institutional and hedge fund ownership stands at 78.32% of Mondelez’s shares.

Mondelez International, headquartered in Chicago, Illinois, emerged from the 2012 split of Kraft Foods, focusing on the global snack market. The company develops and distributes a diverse array of products, including biscuits, chocolate, gum, and savory snacks, catering to retail, food service, and e-commerce channels worldwide.

As the company navigates these fluctuations in analyst ratings and market performance, stakeholders remain attentive to Mondelez’s strategic initiatives and financial outcomes in the coming quarters.