Evercore ISI raised the firm’s price target on Mondelez (MDLZ) to $85 from $79 and keeps an Outperform rating on the shares. After holding a webinar with Andres Kiceleff, Senior Cocoa trader at Olam International, to discuss the cocoa market and implications for chocolate manufacturers like Hershey (HSY) and Mondelez, the firm tells investors that discussion about conditions for West Africa crop yield for 2024/2025 looking favorable should put supply at a surplus for 2024/2025 season for the first time in three years. The better crop this year will likely set the table for moderating cocoa prices and solid earnings growth for chocolate companies in 2026, argues the firm, which is increasing its base case price target for Mondelez to reflect a resilient European consumer and upside to 2026 EPS from an average crop scenario in 2025.
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