Cowen sweet on Mondelez, less so on Hershey
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Cowen analyst Brian Holland advised clients that Mondelez (NASDAQ:MDLZ) offers a tasty opportunity for investors on Wednesday.

âWe are constructive on Mondelez amidst the current valuation disconnect,â he said. âOur analysis shows the company boasts advantaged consumer (emerging markets) and category (snacking) exposure, as well as relatively low private label penetration.â

He opined that the companyâs runway to sales growth is being discounted while inflationary concerns are likely overdone. Further, Holland indicated Mondelez (MDLZ) may be keen to make more âportfolio shapingâ moves in line with its history as an active M&A player in terms of both acquisitions and divestitures.

He assigned a âBuyâ rating to the stock alongside a $71 price target.

Elsewhere, Holland was less optimistic on the path ahead for The Hershey Company (HSY). 

âWe believe the market has fully priced in strong execution, successful diversification, best-in-class margins, pricing power, and lower relative international exposure,â he wrote of the company. âAs brand reinvestment should keep a lid on margins, we don't see upside in our model sufficient to further catalyze a stock already trading at the highest relative valuation (vs. trailing 5 yr average) in S&P Packaged Food.â

As such, Holland assigned a $238 price target to the stock alongside a Hold-equivalent rating.
Read more on Mondelezâs (MDLZ) recent investor presentation on September 7.