UPDATE: Canaccord Genuity Initiates Mondelez at Sell on Valuation

Canaccord Genuity initiated coverage on Mondelez

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.