In a report released today, Peter Grom from UBS maintained a Hold rating on Mondelez International, with a price target of $63.00.
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Peter Grom has given his Hold rating due to a combination of factors tied to Mondelez International’s 2026 outlook and current trading dynamics. While the company modestly beat EPS expectations in the latest quarter, this outperformance was driven by stronger revenue and favorable interest expense rather than sustainable margin strength. More importantly, the initial 2026 guidance for organic sales growth of flat to 2% and constant-currency EPS growth of 0–5% came in below both UBS and market expectations, indicating a slower growth trajectory than previously assumed. Grom views parts of the earnings pressure, such as inventory cost phasing related to cocoa, as temporary, but believes the overall guidance will still likely pressure the stock in the near term.
At the same time, he sees the company’s outlook as conservative but acknowledges there are numerous uncertainties that limit visibility, particularly around top-line momentum given weaker category trends, pricing negotiations, and customer disruptions in key regions. Management expects the first quarter of 2026 to be the softest for both revenue and earnings, with improvement only gradually emerging as the year progresses and price investments are intended to drive a more volume-led recovery in the second half. Given these mixed signals—near-term headwinds, below-consensus guidance, but potentially achievable targets and solid free cash flow generation—Grom concludes that the risk/reward profile is balanced rather than compellingly positive or negative. This combination of cautious fundamentals and limited upside versus expectations underpins his decision to maintain a Neutral (Hold) stance on MDLZ shares.
According to TipRanks, Grom is an analyst with an average return of -2.9% and a 52.40% success rate. Grom covers the Consumer Defensive sector, focusing on stocks such as Campbell Soup, General Mills, and Monster Beverage.
In another report released today, TipRanks – OpenAI also downgraded the stock to a Hold with a $64.00 price target.