Barclays Ups Mondelez Price Target on Strong Snacks Performance and EM Growth
Barclays has raised its price target for Mondelez International to $71 from $63, while maintaining an Overweight rating on the stock. The upgrade reflects growing confidence in Mondelez’s resilience, particularly in its core snacks segment, and its strategic positioning across emerging markets (EM).
Analysts noted that Mondelez has built a “recession-resilient earnings base,” with its portfolio increasingly focused on snacks, a category that continues to enjoy robust consumer demand. This strategic shift supports better margin stability and pricing power, even amid macroeconomic headwinds.
Emerging markets remain a critical growth engine for the company, with stronger volume trends supporting its top and bottom-line expansion. Volume-led growth in EM, where Mondelez has deep brand penetration and distribution reach, is helping to offset softer conditions in developed markets.
Despite current valuation premiums versus food peers, Barclays believes Mondelez’s higher exposure to snacks and international markets justifies the multiple. The company’s risk/reward profile is seen as favorable, backed by pricing initiatives, cost discipline, and continued investment in brand equity.
Mondelez, known for its iconic brands such as Oreo, Cadbury, and BelVita, has delivered consistent earnings performance in recent quarters, even with inflationary pressures. This performance has bolstered investor confidence and supported analyst optimism about its long-term trajectory.
FMCG professionals will find Mondelez’s business model increasingly compelling as the company continues redirecting focus from legacy grocery categories toward snacks—a move aligned with evolving consumer preferences for convenient, on-the-go formats.
Barclays’ raised target reinforces a broader industry trend of valuing scaled global players with high-margin, impulse-purchase products and resilient global supply chains. For brand managers and strategists, Mondelez’s growth blueprint—leveraging global branding, efficient operations, and localized innovation—offers a model worth attention.