Mondelez International's Rose in the Midst of S&P 500 Industry
Mondelez's shares see an upswing following Wells Fargo's upgrade of its rating and an increase in the price target.
The share price of Mondelez International (MDLZ) skyrocketed among the S&P 500 stocks Friday, all thanks to Wells Fargo upgrading its rating and bumping up its price target. Here's the sweet scoop!
Wells Fargo analysts gave Mondelez a thumbs up, moving their rating from "equal weight" to "overweight" and raising their price target from $68 to a whopping $78. Why, you ask? The bull case just got more enticing for the maker of treats like Chips Ahoy!, Oreos, and Sour Patch Kids.
The analysts declared, "While the company is battling historical inflation in 2025, with strong pricing execution, easing inflation in 2026, and a recovery of earnings ahead, the 'bull case feels more tangible'."
Mondelez International shares buzzed more than 3% in recent trading, reaching approximately $68.50. This year, they've already surged around 15%.
Ponder this: despite the hurdles posed by sky-high cocoa prices, Mondelez's earnings outlook for 2026 appears rosy. Wells Fargo forecasts an increase of 9% in earnings per share (EPS) for Mondelez in 2026, after a testing 2025 with about a 10% drop in adjusted EPS due to unparalleled cocoa cost inflation[2][3]. The easing of commodity price pressures, particularly stabilizing cocoa prices, gives a positive boost to this optimistic outlook for 2026. Wells Fargo's commodity model suggests a "neutral" commodity environment by 2026, favorable for margin improvement and EPS growth[2][3].
Mondelez is poised to achieve around 100 basis points of gross margin expansion in 2026, showcasing their robust pricing power and cost management capabilities. Their pricing execution, coupled with moderating inflation, allows for this gross margin improvement, despite earlier cost pressures[3].
The company's organic sales growth, especially an impressive 12% growth in Europe in 2025 despite economic turbulence, highlights Mondelez's market resilience and effective pricing strategy[3].
In comparison to peers like Procter & Gamble and Coca-Cola, Mondelez trades at a cheaper valuation but is projected to grow EPS twice as fast in 2026. This valuation disparity suggests Mondelez's earnings growth could pique investor interest and potential multiple expansion[3].
The street consensus for 2026 earnings estimates Mondelez's net income around $4.3 billion, affirming expectations of recovery and growth after the 2025 earnings struggles[5].
All in all, despite the current cocoa price headwinds affecting both 2024 and 2025 earnings, the 2026 earnings outlook looks cheerful[2][3][5].
The upgrade by Wells Fargo has increased the potential for token trading and investing in Mondelez International, as its price target was raised from $68 to $78, suggesting a promising future for finance and business. This bullish outlook for Mondelez, despite the challenges of high cocoa prices, could attract more attention in the Decentralized Autonomous Organization (DAO) and Initial Coin Offering (ICO) communities, given the company's predicted earnings growth in 2026. As Mondelez continues to show robust pricing power and cost management capabilities, its shares might continue to outperform its peers in the trading market.
