Investing.com – Freedom Broker downgraded Mondelez International (NASDAQ:MDLZ) to Hold from Buy on Thursday, maintaining a price target of $71. The stock currently trades at $60.73, suggesting potential upside of 17% to the analyst’s target.
The firm cited rising cocoa prices as a key factor behind the rating change. Cocoa prices reached their highest level in five months.
Freedom Broker noted that renewed concerns over input cost inflation have emerged. Commodity inflation previously weighed on the company’s profitability. Despite these headwinds, the company maintains a gross profit margin of 28.77% and remains profitable over the last twelve months, according to InvestingPro data, which shows the stock is currently undervalued relative to its Fair Value.
The analyst observed that Mondelez shares showed only a limited reaction to the cocoa price increases. The firm maintained its 12-month price target of $71 per share.
Mondelez International manufactures and sells snack foods and beverages globally. The company’s product portfolio includes chocolate, biscuits, gum, and candy brands. For deeper insights into MDLZ’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available for this and 1,400+ other US equities on InvestingPro.
In other recent news, Mondelez International announced the appointment of Amit Banati as Executive Vice President and Chief Financial Officer, effective July 1, 2026. Banati brings experience from his previous roles at Kenvue, Inc. and Kellanova. Meanwhile, options trading activity for Mondelez surged, with a notable increase to 10,725 contracts, including 10,040 call options and 685 put options, highlighting significant investor interest. Additionally, Wells Fargo expressed a positive outlook for Mondelez, noting that cocoa prices could remain high due to tight inventories, which may benefit the company. Morgan Stanley reiterated its Overweight rating on Mondelez, maintaining it as a Top Pick, and expressed confidence in the company’s earnings potential. This comes amid increased trading activity, with another report showing 3,842 options contracts traded, comprising 2,218 call options and 1,624 put options. These developments indicate a period of heightened interest and activity surrounding Mondelez International.
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