JPMorgan Sees Back-Half Recovery for Mondelez International, Inc. (MDLZ) Despite Cocoa Headwinds
Mondelez International, Inc. (NASDAQ:MDLZ) is included among
Dividend Contenders List: Top 20 Stocks.
On January 21, JPMorgan lowered its price target on Mondelez International, Inc. (NASDAQ:MDLZ) to $69 from $71. It maintained an Overweight rating ahead of the company’s Q4 earnings report on February 3. The firm expects earnings momentum in 2026 to show up more in the second half of the year, as higher spending and softer volumes are likely to weigh on results early on.
Cocoa prices remain the main pressure point. Mondelez has warned that "unprecedented cocoa cost inflation" could cut adjusted EPS by as much as 15% in 2025. Still, the company is entering this period from a position of strength. Its global footprint and portfolio of established brands help support results even as the cost environment remains difficult.
A January 20 note from CNBC Pro suggested Mondelez could hold up well as it adjusts its approach for consumers who are becoming more price-conscious. There is also some potential relief ahead, with cocoa prices beginning to show signs of easing in 2026, which would benefit the Cadbury owner.
From a risk profile perspective, the stock remains defensive. Mondelez has a beta of 0.04, a dividend yield of 3.4%, and a total debt-to-equity ratio of 68.9%. Over the past 12 months, the shares have been largely stable, up by just 1%.
Mondelez International, Inc. (NASDAQ:MDLZ) is one of the world’s largest snack companies and operates within the consumer staples sector. When economic conditions weaken, spending on food tends to remain steady, and demand for lower-priced options often increases. That dynamic can make large food producers more attractive when other areas of consumer spending come under pressure.
While we acknowledge the potential of MDLZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 13 Best Dividend Kings to Buy in 2026and 14 Best Mid Cap Dividend Aristocrat Stocks to Buy Now
Disclosure: None.
Content Original Link:
" target="_blank">
