Mondelez tone positive on near-term, set up for strong Q3, says Evercore ISI

Evercore ISI analyst David Palmer notes that Mondelez management presented at a conference today. As expected, the company’s tone was positive on the near-term as it is encouraged by sales improvement in Europe and the U.S., which is setting up for a strong Q3 and supports second half of 2024 sales growth acceleration, the firm says. Evercore models Europe Q3 organic sales +8% and there may be some upside due to favorable shipment timing in Q3, pricing, and a return to merchandising. 2025 seems likely to be below the 6%-8% EPS growth target as the company absorbs cocoa costs and targets volume share. The firm thinks the company may guide 2025 EPS in the flat to 5% year-over-year range with organic sales growth at the high end of 3%-5% organic sales growth target. Evercore maintains an Outperform rating at $79 price target.