-- Mondelez International (MDLZ) is showing good visibility to continued sequential improvement after delivering a strong Q1 EPS upside, Morgan Stanley said in a report Wednesday.
The report said the firm posted "high-quality" EPS beat, with organic sales growth and gross margin exceeding expectations while providing a "conservative" outlook.
"We see good visibility to continued sequential improvement in
fundamentals, supported by underlying OSG momentum and the onset of cocoa cost deflation in 2H," the note said.
The note said that should drive positive earnings revisions against consensus, while the share valuation remains attractive compared with its multinational peers.
"At the very least, we view FY26 as increasingly de-risked, which
should allow the focus to shift more fully to FY27 earnings power, where visibility continues to improve toward a meaningful cocoa-driven margin and EPS inflection," the report said.
Morgan Stanley raised its price target to $71 from $70 while reiterating its overweight rating.
Price: $61.44, Change: $+2.90, Percent Change: +4.94%