Mondelez International Gets Price Target Boost to $65 as Analyst Sees Sweet Spot in Snacks
In a vote of confidence for the global snack giant, analysts at TD Cowen have increased their price target on Mondelez International (NASDAQ: MDLZ) from $62 to $65, reiterating a Buy rating on the stock. The move follows the company's release of its fiscal fourth-quarter 2025 results, which showcased resilient revenue growth amid a complex earnings landscape.
Mondelez reported a full-year net revenue increase of 5.8%, driven by a 4.3% rise in organic sales, favorable currency effects, and contributions from its acquisition of Evirth. This growth was partially tempered by the comparison against prior-year revenue from a now-concluded distributor agreement related to its gum business sale. However, the bottom line told a different story: diluted earnings per share (EPS) fell sharply by 44.7% to $1.89 for the year.
The company attributed the EPS decline to a confluence of factors, including lower adjusted EPS, unfavorable swings in commodity and currency hedge valuations, costs tied to acquisitions, pension plan settlement losses, and significant investment in a company-wide ERP system implementation. Analysts suggest these are largely transitional costs rather than indicators of core business weakness.
"The underlying demand for Mondelez's powerhouse portfolio—from Oreo to Cadbury—remains robust globally," said market analyst David Chen. "The price target increase reflects a belief that the heavy lifting on cost and integration is largely behind them, setting the stage for improved profitability. The snack category is famously defensive, and Mondelez is a prime beneficiary of that trend."
Other investors were more critical. Sarah Jenkins, a portfolio manager known for her blunt assessments, countered, "A near 45% crash in EPS is not a 'transitional cost'—it's a warning sign. They're spending a fortune on systems while consumers are trading down. This target hike feels like analysts chasing momentum in a stock that's already had a strong run, ignoring the real margin pressure."
Retail investor Michael Torres offered a middle-ground view: "As a long-term holder, I see the brand strength. Everyone still buys snacks in a downturn. The ERP investment is painful now but necessary for efficiency later. I'm holding, but the volatility in the reported numbers is frustrating."
Mondelez, with its vast portfolio of iconic brands sold in over 150 countries, continues to be a bellwether for the global packaged food sector. The analyst upgrade underscores a broader debate on whether current investments will fuel future growth or continue to weigh on shareholder returns in the near term.