1225 ET - The normalization in the costs associated with the cocoa market should improve Mondelez International and Hershey's hedging positioning, TD Cowen analysts say in a research note. Cocoa spot prices have seen a 19% pullback since the beginning of the year, and futures curve have shifted down 12%, the analysts say. TD Cowen increases its Mondelez 2026 EPS estimates to $3.15 in response to the pullback and sees further upside to its 2026 and 2027 estimates if cocoa costs continue to normalize, even if these markets are inherently volatile and difficult to predict. "We continue to favor Mondelez's long-term positioning due to its strong brands and advantaged platform in developing markets." TD Cowen raises its Mondelez target price to $71 a share from $57 a share previously. Shares rise 1.3% to $65.53. (sabela.ojea@wsj.com; @sabelaojeaguix)
(END) Dow Jones Newswires
February 24, 2025 12:26 ET (17:26 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.