Investing.com -- TD Cowen lift its target on Mondelez (NASDAQ:MDLZ) International by $14 to $71, also raised its 2026 per share profit estimate, amid a 19% decline in cocoa spot prices this year and a 12% drop in the futures curve, which could improve the company’s hedging position.
“While the cocoa markets are inherently volatile and difficult to predict, we believe the pullback will improve Mondelez and Hershey's hedging positioning,” analyst at TD Cowen said.
The brokerage increased its 2026 EPS estimates for Mondelez to $3.15.
The firm maintained a positive long-term outlook on Mondelez, on its strong presence in emerging markets, leadership in snacking categories, and pricing power.
“We see further upside to our 2026 and 2027 estimates if cocoa costs continue to normalize”
TD Cowen’s price target of $71 per share, is based on a 22.5 times price-to-earnings on its 2026 estimate, above the company's five-year average, with potential upside if cocoa costs continue to normalize.
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