UPDATE: Nomura Reiterates Reduce Rating, Lowers PT on Mondelez International on 2015 Outlook

In a report published Wednesday, Nomura analyst David Hayes reiterated a Reduce rating on

, but lowered the price target from $31.00 to $30.00. In the report, Nomura noted, “We are concerned that current targets and timing are overly ambitious. We model margins of 15.1% by FY16E (+200bp from FY14), at the low-end of current guidance. Input cost inflation rose sharply in 3Q, and we assume it will persist into 2015. For underlying sales growth, we cannot see any areas of improvement over 2014 for the core business (excl. coffee, merger still planned in 2015). FCF yield is worst in class, in part owing to restructuring. We cut our 2015E EPS by 5%, reflecting forex and growing signs of sales weakness in the EU and emerging market consumer trends (c12% below consensus), reflecting the wait for clarification on forex guidance and over-optimism on sales recovery.” Mondelez International closed on Tuesday at $36.62.