Mondelez International (MDLZ) PT Lowered to $82 at BofA Securities

BofA Securities analyst Bryan Spillane lowered the price target on Mondelez International (NASDAQ: MDLZ) to $82.00 (from $84.00) while maintaining a Buy rating.

The analyst comments "1) We lower LatAm FX to -11% from -9% to better reflect moves in the Mexican Peso and Brazilian Real. We also lower North America volumes to +2.5% from +5% to illustrate a more modest acceleration from 3Q as pack size changes take time to hit results and despite easy YoY 4Q compare. 2) Lower GM estimate which moves to 32.5% from 34.8%, which is now down -540bps YoY. 3) Lower SG&A, implying SG&A dollars only up modestly YoY. 4) We lower our interest expense to $75mm from $110mm, to be more consistent with trends in recent quarters. 5). We now model tax rate of 20%, prior 22.5%, which moves our full year tax rate closer to 25%. Net, changes above the operating line are a ($0.13)/sh hit to 4Q EPS, while below the line are a $0.04/sh benefit."

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