09:00 AM EDT, 05/01/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target to $72 from $81, 21.1x our '24 EPS of $3.41 (cut from $3.50; '25 cut to $3.62 from $3.75) and in line with MDLZ's long-term mean. Q1 adj-EPS of $0.95 (+11% Y/Y) was $0.06 above consensus, driven by strong gross margins (+290 bps Y/Y to 39.1% vs. our 37.9% estimate). Margins should see softness in the back half of the year as higher cocoa costs flow into the income statement. MDLZ is fully covered in terms of cocoa needs for '24 (at a much lower price than current market) and is being selective in covering its '25 cocoa needs, as it believes cocoa prices will correct sometime this fall. MDLZ kept its full-year outlook unchanged, but we sense some downside risk given expanding elasticities in chocolate, softness in U.S. biscuit (e.g., Chips Ahoy), ongoing customer disruptions in Europe, and political unrest in the Middle East. Positives include strong share buybacks ($0.6B repurchased in Q1 and $2B expected for the year vs. $1.5B in '23) and a solid balance sheet (2.5x leverage ratio).