Mondelez International impresses BofA with food portfolio strength
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Bank of America thinks Mondelez International (NASDAQ:MDLZ) deserves a premium valuation after taking in the food giant's Q4 earnings report and strong organic sales guidance. The firm thinks that despite multiple rounds of price increases, the food company exited the year stronger than it started.
BofA kept a Buy rating on MDLZ and price objective of $77 in place following the report. Looking ahead, analyst Bryan Spillane and team noted MDLZ's portfolio strength given its low exposure to private label vs. its peers. MDLZ is also noted to be strong in categories with elasticities that have held up well in an inflationary environment and have a presence in fast-growing geographies. Other positive factors said to be in the mix is the revenue acceleration potential beyond category growth and good cash flow generation
Shares of MDLZ gained 2.26% in premarket trading on Wednesday.
Dig into the Mondelez International earnings call.