Analysts Set $66 Price Target as Institutions Add Millions of Mondelez Shares
Analysts maintain a moderate buy consensus on Mondelez with 14 buy ratings, seven holds, one sell and an average 12-month price target of $66. Capital International grew its stake in Mondelez by 9.7% (6.96 million shares) while JPMorgan Chase increased holdings by 17.1% (10.14 million shares).
1. Solid Dividend Supports Income-Focused Investors
Mondelez International recently declared a quarterly dividend of $0.50 per share, representing a $2.00 annualized payout and a yield of approximately 3.5%. This marks the twelfth consecutive year of dividend increases, underscoring the company’s commitment to returning capital. With a payout ratio near 75%, Mondelez balances shareholder distributions against ongoing investments in marketing and innovation. The ex-dividend date was December 31, and payment was made on January 14 to shareholders of record, reinforcing the appeal for income-oriented portfolios despite broader margin pressures.
2. Mixed Analyst Ratings Highlight Valuation Debate
A consensus of 22 sell-side firms currently rates Mondelez International as a ‘Moderate Buy,’ reflecting cautious optimism on valuation. Fourteen firms recommend buying the shares, seven recommend holding, and one advises selling. The average 12-month price target stands at $66.00, suggesting limited upside from current levels. Recent adjustments include Sanford C. Bernstein trimming its target from $85 to $84 while maintaining an outperform stance, and UBS lowering its neutral target from $63 to $60. Zacks Research notably shifted to a ‘Strong Sell,’ citing margin headwinds, whereas DZ Bank upgraded its view to ‘Buy’ after positive category trends in North America.
3. Institutional Investors Adjust Stakes as Earnings Trail Expectations
Major fiduciaries continue to back Mondelez despite a recent profit miss. In the third quarter, Capital International Investors increased its holding by 9.7%, adding nearly 7.0 million shares and bringing its total to 78.6 million. JPMorgan Chase & Co. boosted its stake by 17.1%, acquiring over 10.1 million shares, while State Street Corp lifted its position by 1.5% to 60.3 million shares. The company reported quarterly revenue growth of 5.9%, yet EPS of $0.73 fell just short of consensus forecasts. Management reiterated full-year guidance of approximately $2.86 per share, with investors weighing near-term margin pressures against a resilient global snacks portfolio.