11:54 AM EDT, 03/16/2026 (MT Newswires) -- Mondelez International ( MDLZ ) is being viewed as a "top pick" as declining cocoa prices are expected to drive a significant earnings and margin recovery beginning in H2 of 2026 and accelerating into 2027, Morgan Stanley said in a report Monday.

The investment bank said recent stock underperformance tied partly to "geopolitical" concerns and pricing pressures has created a "buying opportunity," with continued cocoa price deflation expected to support a "significant margin inflection," according to the report.

Cocoa prices have fallen about 75% from their peak and roughly 20% since Mondelez ( MDLZ ) reported Q4 2025, results, improving "visibility" into stronger margins and above-consensus earnings growth in 2027, the report said.

The investment bank raised its 2027 "base and bull case" estimates and reiterated an overweight rating on Mondelez ( MDLZ ), while raising its price target to $70 from $66.

Price: 56.62, Change: +1.73, Percent Change: +3.15