Mondelez Int'l (MDLZ): Raising PT On Margin Expansion - RBC

RBC Capital analyst, David Palmer, reiterated his Outperform rating on shares of Mondelez International (NASDAQ: MDLZ) and raised his price target to $56 from $54. The PT increase is based on rising EPS estimates but reduced organic revenue.

3Q EBIT margin exceeded expectations by 100bps (15.8% versus consensus 15%), $41M (or 60bps) can be attributed to 1) a $34M one-time VAT settlement in Latin America and 2) a $7M gain on the sale of a US biscuit trademark. In addition, a number of onetime tax benefits significantly lowered 3Q's effective tax rate (14.8% versus RBCe 23%), which are not expected to continue.

2016 and 2017 EPS go from $1.88 and $2.15 to $1.98 (+13%) and $2.24 (+13%).

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 $44.32 yesterday.

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