Mondelez International will get a boost from an improving outlook in cocoa prices, according to Jefferies. The firm upgraded the snack maker to buy from hold in a Thursday note and raised its price target to $78 per share from $66. Jefferies’ new forecast implies about 16% upside from Wednesday’s close. Mondelez’s portfolio of chocolate products includes Oreo and Chips Ahoy cookies. “Cocoa inflation has been a headwind to profit recently, although with an improving cocoa supply/demand outlook, limited volume hit despite high cocoa-driven price increases, and strong execution capabilities, the company is positioned well to recover input cost inflation and grow faster vs. center-store peers,” analyst Scott Marks said. Cocoa futures are down more than 37% year to date after hitting a record high in December. Marks also said Mondelez is “advantageously positioned in faster-growth snacking categories with exposure to faster-growth markets relative to many of its US peers, and with a well-positioned balance sheet.” The analyst added that while there are signs that the U.S. consumer remains under pressure, strength in Europe and the overall cocoa market should both be tailwinds for Mondelez. “While U.S. retail sales data suggests a still pressured consumer, we believe Europe dynamics, strong execution, and an improving cocoa outlook position MDLZ well for profit upside in ’26 and beyond,” he said. Mondelez International shares, which are up 13% year to date, rose about 1% in the premarket after the Jefferies upgrade. MDLZ YTD mountain MDLZ year to date Analysts are mostly bullish on Mondelez. Of the 29 who cover it, 19 rate it a buy or strong buy, LSEG data shows.
