COM - Mondelez International: Good Growth Prospects And A Favorable Valuation
2024-06-25 13:35:00 ET
Summary
- Mondelez International, Inc. has good growth prospects with revenue benefiting from pack size changes and non-recurrence of volume headwinds.
- Hedged cocoa prices and cost-saving initiatives are expected to support margins, along with potential M&A and distribution expansion for revenue growth.
- The stock is trading below historical averages with a healthy dividend yield, making it a buy with favorable risk-reward potential.
Investment Thesis
Mondelez International, Inc. ( MDLZ ) has good growth prospects ahead. The company's revenue growth in the coming quarters should benefit from pack size changes which the company is doing to sustain demand in an inflationary environment by ensuring the affordability of entry-level packs. In addition, the non-recurrence of one-time volume headwinds that the company faced in Q1 2024 should also benefit revenues. In the medium to long term, an increase in distribution both in the U.S. and in emerging markets and potential M&A should support the company's revenue growth....
Mondelez International: Good Growth Prospects And A Favorable Valuation