RBC Capital upgraded shares of Mondelez (NASDAQ:MDLZ) to Outperform from Sector Perform in a note Monday, raising the price target for the stock to $83 from $75 per share.
Analysts told investors the upgrade is based on MDLZ's «best-in-class organic growth with some M&A icing on top.»
«We previously downgraded MDLZ in early 2023 based on our concerns for the overall packaged food industry (valuations and volume recovery), and at the time, MDLZ was near our price target,» the analysts explained.
«Since then, MDLZ has consistently delivered on earnings and is one of the very few staples names to deliver volume growth in 2023,» they added.
After the firm reviewed its model and spent time with MDLZ management, they believe the company «will deliver best-in-class top-line and margin performance and should trade at a multiple that reflects this.»
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