Mondelez International (MDLZ, Financials) lost a bit of Wall Street support on Thursday, as D.A. Davidson downgraded the snack maker to neutral from buy, pointing to valuation concerns and a murky demand outlook.

The firm did lift its price target to $68 per share, but that's only about a 1% increase from where the stock closed Wednesday at $67.38.

Analyst Brian Holland said the downgrade reflects concerns over soft snack demand in the U.S. and an uncertain picture in emerging markets. With Mondelez shares already up more than 12% this year and recovering nearly 20% from February lows, Holland believes the stock may be pricing in too much optimism — especially around cocoa, where recent volatility could pressure margins.

“Given snacking weakness, macro uncertainty, and cocoa volatility, we see risk-reward as balanced,” Holland wrote, signaling a more cautious stance going forward.

The move suggests investors might want to wait before jumping in, particularly as consumer behavior remains fragile and economic uncertainty persists. Mondelez, a mainstay in the defensive staples sector, has attracted buyers for its steady profile — but Davidson's latest note implies the market may have gotten ahead of itself.