Mondelez Stock Price Target (NASDAQ: MDLZ) Trimmed

Mondelez has experienced a slight decline in its stock price (NASDAQ: MDLZ) through the early hours of pre-market trading. At the time of writing, shares of Mondelez have fallen 0.26% to a price of $57.71.

This move follows an announcement from investment firm Jefferies, which downgraded the stock to “Hold” from “Buy” and reduced the price target to $62 from the previous $75. The firm has raised concerns over the potential structural supply issues in cocoa, which could affect Mondelez's commonly perceived status as a “safety stock”. Jefferies also anticipates that shorter-duration buying will likely sustain elevated prices for longer.

The downgrade by Jefferies was largely influenced by their research into the cocoa market, indicating a shift in outlook concerning supply constraints and pricing pressures. Their analysis suggests that these factors, which were previously less of a concern, now pose a significant challenge to Mondelez's operational model and future profit margins.

Mondelez International, headquartered in Chicago, Illinois, operates within the Confectioners industry, which is part of the wider Consumer Defensive sector. As a global snack food and beverage powerhouse, Mondelez manufactures, markets, and sells a range of products, from biscuits and chocolates to gums and candies. Among their well-known brands are Oreo, Ritz, Cadbury, Milka, and Toblerone. The company serves a vast retail food outlet network across various continents, including supermarkets, drug stores, and convenience stores, and also markets products directly to consumers through digital and e-commerce channels.

With a market capitalization of approximately $77.37 billion, Mondelez's stock has operated within a 52-week range between $55.97 and $77.20. Mondelez's trailing price-to-earnings (P/E) ratio stands at 20.52, and its forward P/E is at 17.44, representing expectations of future earnings growth.

Financial highlights reveal the company has sustained a robust dividend model with a dividend rate of $1.88 and a yield of 3.25%, reflecting a payout ratio of 61.88%. Mondelez reported total revenue of $36.15 billion and a net income to common shareholders of $3.82 billion.

Institutional investors and hedge funds are significant stakeholders in Mondelez, holding 82.84% of the stock. The number of outstanding shares totals around 1.34 billion, with 1.33 billion shares in the float.

There is a consensus among 25 analysts who offer coverage on Mondelez, placing a mean target price of $74.64 on the stock and assigning a consensus rating of “Buy”. This reflects a generally positive sentiment despite the recent downgrade by Jefferies.