Analysts see yet more upside to Mondelez guidance
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After posting a beat on earnings and raising full-year forecasts on Tuesday evening, multiple Wall Street analysts voiced increased bullishness on Mondelez (NASDAQ:MDLZ).

Indeed, BMO Capital Markets analyst Kenneth Zaslow said that guidance could still be conservative.

âWe would not be surprised if MDLZ were to exceed 10% constant currency EPS growth outlook in F2022, while setting the table for an above-algorithm year in 2023, largely reflecting pricing actions, easing of supply chain constraints, muted demand elasticity, and ongoing growth in Emerging Markets,â he told clients on Wednesday. âWe increased our F2022 outlook and maintained our above-consensus outlook for F2023 on our view that demand elasticity will remain muted while its acquisition strategy continues to contribute to incremental growth.â

Similarly, Stifel analyst Christopher Growe called the results âsmooth as a chocolate barâ and reiterated a bullish stance on the stock after the hike to guidance.

âThe success of this quarter and the year-to-date performance provides high confidence in this new higher guidance for the year and it confirms the industry-leading growth characteristics of Mondelezâs model â this business is really flourishing amidst the heavy reinvestment in the business and even as pricing is pushing higher,â he told clients. âWe continue to marvel at the financial performance of this company which, quarter in and quarter-out is not only leading the food industry, but is at the top-tier of its Consumer Staples peers even as its valuation lags those peers.â

He added that a strong balance sheet for the company allow for potential growth via M&A action in the coming quarters. 

Elsewhere, both Piper Sandler and Morgan Stanley raised price targets on the name after the strong earnings beat. Shares of Mondelez (MDLZ) rose 1.13% shortly after the market open.
Read more on the earnings results.