UBS Starts Mondelez International (MDLZ) at Buy, Growth at a Good Price

UBS initiates coverage on Mondelez International (NASDAQ: MDLZ) with a Buy. PT $31.00 (from $46.00).

"In our view, multiple expansion for MDLZ will be dictated by the company's ability to consistently deliver 5%-7% revenue growth, along with upside to consensus EPS," analyst David Palmer comments. "Given our expectation for below average revenue growth in 3Q (4% FX-neutral estimate as a result of buy-in last year), we believe MDLZ may be more of a 2013 story as top line trends improve in 4Q and 2013."

A bull case can be made for a $33 target on a top tier valuation. "Should Mondelez deliver this growth consistently through 2013 and beyond, it could achieve a P/E valuation near the 18x average for peers,"

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 $27.85 yesterday, with a 52 week range of $-$.

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