Analysts are currently optimistic about Mondelez stock, as reflected in several target price increases by various banks. For instance, Berenberg has raised the target price for the stock to $77, backed by an improved earnings per share (EPS) forecast for 2025 and a reduced forecast for currency risks. These adjustments are also based on an updated discounted cash flow analysis with a slightly lowered risk-free interest rate, signaling an overall positive market environment.
Investor Confidence and Target Price Increases
Morgan Stanley also rates the stock as “Overweight” and expects revenue growth due to better market share gains. According to TipRanks, the average analyst price targets are around $70.88, with a high of up to $82 by 2025. Revenue expectations are also positive: approximately $37.60 billion is projected for the current fiscal year, representing an increase from the previous year. However, a decline in earnings per share is expected (from $3.44 last year to an estimated $2.91).
Risk Factors and Commodity Prices
A significant risk factor remains the rise in cocoa prices. Since cocoa is one of Mondelez’s main raw materials, increasing prices could squeeze profit margins and consequently affect the company’s future earnings. Investors should therefore closely monitor this development and incorporate it into their assessments.
In summary:
- Several banks have raised their target prices and are optimistic about organic growth as well as an improved market environment.
- Revenue expectations are rising; however, a decline in earnings per share is predicted.
- Rising cocoa prices pose a potential burden on margins.
- Investors should especially keep an eye on the impact of commodity prices on profitability.
Taken together, these factors suggest that despite positive analyst assessments, certain risks remain.