Mondelez (MDLZ) PT Raised Sharply at Credit Suisse; 'Best is Still to Come'

Credit Suisse analyst R. Moskow reiterated an Outperform rating and boosted his price target on Mondelez International (NASDAQ: MDLZ) price target of $48.00 (from $42.00) following meetings with management. The firm said all is on track and the "best is still to come."

Moskow commented, "Our recent meetings with management increased our conviction that the company has more room for operating margin expansion beyond the 15-16% goal established for 2016. The company is now almost half-way to its goal before it even begins to implement its restructuring programs. We are raising our EPS estimates and raising our target price to $48/share based on 20x the average of our 2017 and 2018 EPS estimates. We are raising our operating margin estimate for 2018 to 17.5% based on the assumption that 60% of the company's targeted $3 billion in savings drops to the bottom line. Aside from 3G-owned Heinz, Mondelez has the most visibility into cost savings in our coverage space and the highest sense of urgency to improve its performance."

For an analyst ratings summary and ratings history on Mondelez International click here. For more ratings news on Mondelez International click here.

Shares of Mondelez International closed at $40.02 yesterday.

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