Mondelez International (MDLZ) PT Lowered to $64 at Mizuho

Mizuho analyst John Baumgartner lowered the price target on Mondelez International (NASDAQ: MDLZ) to $64.00 (from $69.00) while maintaining a Outperform rating.

The analyst commented: 'FY25 EPS Guide Weaker but Model Becoming Stronger; Maintain Outperform: Much as feared, FY25 EPS guidance (-14% yr/yr incl. -400bps fx) trailed Street's -5% on the full weight of cocoa inflation. Visibility is limited into the ultimate path for cocoa prices but a nearly fully-hedged FY25 largely limits downside risks to (1) retail elasticity; (2) retailer disruptions; elements that MDLZ has very accurately embedded in past guidance. We see FY25 EPS biased to the upside, and expect a larger focus on FY26 (cocoa futures currently -20% yr/yr) which likely benefits from FY25's structural cost enhancements/mix accretion and operating leverage; innovation & distribution also likely maintain normalized annual revenue (+5%). We reduce EPS for FY25 ($2.90 from $3.21) and FY26 ($3.56 from $3.75), and our PT ($64 from $69) on a blend of our FY26 bull/base/bear case EPS at a weighted 17x (approx. in line with global Staples peers)."

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