DA Davidson increased its 12-month price target for Mondelez International (NASDAQ:MDLZ) to $64.00 from $62.00, while keeping a Neutral recommendation on the snack food maker. The updated target sits close to InvestingPro’s Fair Value estimate and implies the stock is modestly undervalued relative to its market price of $60.02.
The research house highlighted several strategic initiatives it views as supportive of sustained growth in a normalized market: continued investment behind brand equity, gains in distribution and efforts to expand across channels. Those actions helped underpin Mondelez’s 5.75% revenue increase over the last twelve months, with total revenue of $38.54 billion recorded by the company.
DA Davidson emphasized that the current macro backdrop remains soft, particularly in developed markets where consumer confidence has weakened. That environment is compelling Mondelez to reinvest through pricing activities, advertising and consumer promotions - steps the firm said should protect share and brand positioning but may weigh on near-term margins.
The analyst also flagged operational and market-specific pressures likely to affect results through the first half of 2026. These include customer disruption in Europe tied to price negotiations and inventory cost phasing related to cocoa, both of which DA Davidson expects will pressure top- and bottom-line performance during that period.
InvestingPro data referenced by the research house shows Mondelez has a long track record of returning capital to shareholders, maintaining dividend payments for 25 consecutive years and currently offering a 3.33% yield. At the same time, liquidity metrics raise caution - InvestingPro’s analysis indicates Mondelezâs short-term obligations exceed liquid assets, with a current ratio of 0.59.
Valuation remains a key lens for DA Davidson. Mondelez trades at a premium relative to peers, with a price-to-earnings ratio of 31.76 and an EV/EBITDA multiple of 20.57. The company’s market capitalization stands at $76.94 billion. The firm noted that its stance would become more constructive during periods of share weakness, and observed that relative valuation has widened following a recent neutral read on Hershey.
Market reactions from other brokerages have been mixed. DA Davidson described Mondelezâs fourth-quarter 2025 financial results as modestly above expectations. The company delivered 5.1% organic revenue growth and earnings per share of $0.72, figures that exceeded Stifelâs estimates. Despite that beat, Mondelez set conservative initial guidance for fiscal 2026, forecasting organic growth of 0-2%.
TD Cowen attributed the cautious outlook to possible pricing pressure from chocolate competitors and volume declines in North America, and responded by raising its price target to $65 while maintaining a Buy rating. Piper Sandler moved its price target to $64, characterizing the results as roughly in line with expectations while trimming 2026 and 2027 EPS estimates. Bernstein SocGen Group lowered its price target to $75, citing the companyâs modest guidance and a delayed easing of cocoa costs. Stifel cut its target to $68, pointing to cocoa cost headwinds but left its Buy rating intact.
Overall, analysts are split between valuing Mondelezâs defensive brand investments and weighing the short-term drag from cost and demand dynamics. DA Davidson's adjusted target reflects that balance: it recognizes the potential for sustainable growth enabled by brand and distribution initiatives while acknowledging near-term headwinds and comparatively full valuation.
Summary
DA Davidson raised its price target on Mondelez to $64 from $62 and kept a Neutral rating, citing brand investments, distribution gains and channel expansion as supporting longer-term growth. The company posted modestly better-than-expected Q4 2025 results but issued conservative 2026 guidance. Near-term risks include European customer disruption and cocoa cost phasing, and balance-sheet metrics show short-term liabilities exceed liquid assets.
Key Points
- DA Davidson increased its price target to $64 while maintaining a Neutral recommendation - the new target aligns with InvestingPro's Fair Value estimate.
- Mondelez reported 5.1% organic revenue growth in Q4 2025 and EPS of $0.72, with full-year revenue of $38.54 billion and 5.75% growth over the past year.
- Sectors impacted: Consumer Staples, Food Products and Capital Markets through valuation and investor sentiment.
Risks and Uncertainties
- Macroeconomic softness in developed markets could force further reinvestment into pricing, advertising and promotions, pressuring margins - impacting Consumer Staples and Retail sectors.
- Operational disruptions in Europe tied to price negotiations, and inventory cost phasing for cocoa, are expected to weigh on revenue and earnings into the first half of 2026 - affecting Food Products and commodity-sensitive supply chains.
- Liquidity concerns: a current ratio of 0.59 indicates short-term obligations exceed liquid assets, a risk for credit and liquidity-sensitive stakeholders.