Wells Fargo sees a rosy outlook ahead for Mondelez International . The bank upgraded the Oreo and Cadbury manufacturer to overweight rating from equal weight. Analyst Chris Carey’s price target of $78 — up from $68 — implies upside of nearly 18%. “We view MDLZ as one of the best execution stories in Staples, with potential to deliver superior long-term growth, driven by share gains in developed market, white space opportunities in developing markets, and a proactive M & A strategy,” Carey wrote. “While the company is confronting historical inflation in 2025, 1) pricing execution has been strong, 2) inflation looks likely to temper in 2026, and we see a recovery of earnings ahead.” The analyst highlighted strong price execution in Mondelez’s chocolate segment. “Cocoa-related inflation is substantial in 2025 and MDLZ needed to price aggressively to help offset this headwind, especially in its biggest chocolate business in Europe,” he wrote. “Elasticities in Europe are faring better than expected. anchoring 2025 estimates, despite lingering softness in North America … We think this gives good flex to keep MDLZ on track for 2025, namely to offset some lingering softness seen in the US Food sector YTD (by MDLZ and peers) while also building confidence into 2026.” Carey also noted that inflation “seems paltry in 2026” and shouldn’t present a huge problem for Mondelez in the near future. He added that the company’s relative setup also seems more attractive versus its peers. “The combination of #1 and #2 make the bull case on MDLZ easier but this also increases the relative intrigue of MDLZ vs a large cap Staples backdrop where growth is harder to come by these days,” Carey wrote. MDLZ YTD mountain MDLZ YTD chart Shares of Mondelez have rallied 11% this year.
