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UPDATE: Canaccord Genuity Initiates Mondelez at Sell on Valuation

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Canaccord Genuity initiated coverage on Mondelez (NASDAQ: MDLZ) with a Sell rating and a $24 price target.

Canaccord Genuity said, "[C]omparing Mondelēz to global peers shows that the business quality is only in-line with peers. The snacks & confectionery categories (75% of EBIT) have enjoyed better than average growth rates in recent years, but they are more susceptible to a consumer downturn, as proved to be the case in 2009. Increased support behind gum has yet to yield results. Cost savings are likely to tail off now, and we see little prospect of Mondelēz closing the significant margin gap with global peers. Recently issued guidance implies aspirations which are similar to many global competitors, rendering Mondelēz's current valuation premium unjustifiable given, on balance, greater risks.

Mondelez closed at $26.40 on Monday.

Latest Ratings for MDLZ

DateFirmActionFromTo
Jan 2017BerenbergInitiates Coverage OnBuy
Nov 2016Deutsche BankAssumesHold
Sep 2016JP MorganAssumesOverweight

View More Analyst Ratings for MDLZ
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Posted-In: Canaccord GenuityAnalyst Color Initiation Intraday Update Analyst Ratings

 

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