Mondelez holds Overweight rating, and price target from Piper Sandler

On Tuesday, Piper Sandler maintained a positive outlook on Mondelez (NASDAQ:MDLZ) International, reiterating its Overweight rating and a price target of $81.00 for the company's stock, traded under NASDAQ:MDLZ. The firm's stance comes in light of recent consumer preference data indicating strong favorability among teens for Mondelez's snack brands.

According to the report, Oreo, a flagship brand of Mondelez, continues to be a top snack choice, securing the seventh spot in the rankings of preferred snack brands among teenagers. This ranking is consistent with previous survey results from Fall 2023, Spring 2023, and Fall 2022. The data shows a slight increase in preference, with 4% of teens naming Oreo as their favorite, a rise from the Spring 2023 survey.

In addition to Oreo's steady popularity, other Mondelez brands such as Clif Bar, Ritz, and Chips Ahoy are also resonating with the younger demographic, albeit to a lesser extent. Each of these brands was chosen as a favorite by 1% of the surveyed teens.

The analysis highlighted an interesting trend for Clif Bar, another brand in Mondelez's portfolio. Approximately 87% of teens who favor Clif Bar expressed intentions to consume more or the same amount of the product in the coming six months.

This intent to maintain or increase consumption levels is the highest among the preferred snack brands, demonstrating significant brand loyalty and potential for sustained sales.

The positive sentiment from Piper Sandler reflects the enduring appeal of Mondelez's snack products within the crucial teenage consumer segment. The company's ability to maintain a strong brand presence among this demographic could be a key factor in sustaining its market position and growth prospects.

Mondelez International's market positioning is further underscored by key financial metrics that reflect its robust operational performance. With a market capitalization of $90.93 billion, the company's size is a testament to its industry standing.

The P/E ratio stands at a solid 18.62, with a slight adjustment to 20.6 when considering the last twelve months as of Q4 2023, indicating investor confidence in the company's earnings potential.

InvestingPro data shows that Mondelez's revenue for the last twelve months as of Q4 2023 hit $36.02 billion, with a noteworthy revenue growth of 14.35% during the same period. This growth is complemented by a gross profit margin of 38.22%, which showcases the company's ability to maintain profitability amidst market fluctuations. Moreover, the company's dividend yield stands at 2.51%, coupled with a dividend growth of 10.39%, which may appeal to income-focused investors.

For those looking to delve deeper into Mondelez International's financials and strategic positioning, the InvestingPro platform offers additional insights. Subscribers can access more InvestingPro Tips to make informed investment decisions.

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