In a report released today, Peter Galbo from Bank of America Securities reiterated a Buy rating on Mondelez International, with a price target of $75.00.
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Peter Galbo has given his Buy rating due to a combination of factors that highlight the potential for Mondelez International’s stock. Despite lowering the third-quarter estimates due to softer scanner data from North America and Europe, Galbo maintains a positive outlook. The adjustments reflect challenges such as decelerating biscuit sales in North America and weather-related impacts in Europe, which have affected volume estimates. However, Galbo anticipates improvements in the fourth quarter, driven by pricing benefits in North America and favorable cocoa prices, which should enhance overall company margins.
Galbo reiterates the Buy rating and a price objective of $75, supported by a valuation of 23 times the estimated earnings per share for 2026. He believes that Mondelez’s strong portfolio, characterized by low exposure to private labels, resilience in snacking categories, presence in fast-growing regions, and high market share, justifies a premium multiple. Additionally, there is potential for revenue growth beyond the category average and strong cash flow generation, reinforcing the positive investment thesis.
In another report released on August 29, RBC Capital also maintained a Buy rating on the stock with a $71.00 price target.