JPMorgan Sees Again-Half Restoration for Mondelez Worldwide, Inc. (MDLZ) Regardless of Cocoa Headwinds

Mondelez Worldwide, Inc. (NASDAQ:MDLZ) is included amongst

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JPMorgan Sees Back-Half Recovery for Mondelez International, Inc. (MDLZ) Despite Cocoa Headwinds — JPMorgan Sees Again-Half Restoration for Mondelez Worldwide, Inc. (MDLZ) Regardless of Cocoa Headwinds

On January 21, JPMorgan lowered its worth goal on Mondelez Worldwide, Inc. (NASDAQ:MDLZ) to $69 from $71. It maintained an Obese ranking forward of the corporate’s This fall earnings report on February 3. The agency expects earnings momentum in 2026 to point out up extra within the second half of the 12 months, as larger spending and softer volumes are prone to weigh on outcomes early on.

Cocoa costs stay the primary strain level. Mondelez has warned that “unprecedented cocoa price inflation” may lower adjusted EPS by as a lot as 15% in 2025. Nonetheless, the corporate is coming into this era from a place of energy. Its international footprint and portfolio of established manufacturers assist help outcomes whilst the fee surroundings stays tough.

A January 20 notice from CNBC Professional advised Mondelez may maintain up properly because it adjusts its method for customers who’re turning into extra price-conscious. There’s additionally some potential reduction forward, with cocoa costs starting to point out indicators of easing in 2026, which might profit the Cadbury proprietor.

From a threat profile perspective, the inventory stays defensive. Mondelez has a beta of 0.04, a dividend yield of three.4%, and a complete debt-to-equity ratio of 68.9%. Over the previous 12 months, the shares have been largely steady, up by simply 1%.

Mondelez Worldwide, Inc. (NASDAQ:MDLZ) is among the world’s largest snack firms and operates throughout the shopper staples sector. When financial circumstances weaken, spending on meals tends to stay regular, and demand for lower-priced choices usually will increase. That dynamic could make massive meals producers extra enticing when different areas of shopper spending come below strain.

Whereas we acknowledge the potential of MDLZ as an funding, we consider sure AI shares provide higher upside potential and carry much less draw back threat. Should you’re on the lookout for an especially undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.

Disclosure: None.