Mondelez International gains on RBC's upgrade to 'outperform'

RBC Bearings

27/11/2023 13:23

** Shares of Toblerone-maker Mondelez International  MDLZ.O 
gain 1.2% to $72.50 premarket after RBC Capital Markets upgrades
to "outperform" from "sector perform"
    ** RBC says co has "consistently delivered" on earnings and
volume growth in FY23, since brokerage's downgrade in early FY23
    ** Co's stock is trading at discount to consumer packaged
goods peers like PepsiCo  PEP.O  and Coca-Cola  KO.N , compared
with trading at a premium in 2019; gap to close entirely - RBC 
    ** Brokerage believes co can deliver top-line growth towards
higher end of 3-5% by expanding its retail footprint, securing
more shelf space in existing stores and an active M&A strategy
    ** RBC raises PT on stock to $83 from $75; an upside of
15.9% to co's last close 
    ** Of the 24 analysts covering stock, 22 rate it "buy" or
higher and two say "hold"; median PT stands at $80 - LSEG data 
    ** Stock up 7.5% YTD until last close 

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))