Latest news with #ScottMarks
CNBC
6 days ago
- Business
- CNBC
This snack maker is a buy as the outlook for cocoa prices improves, says Jefferies
Mondelez International will get a boost from an improving outlook in cocoa prices, according to Jefferies. The firm upgraded the snack maker to buy from hold in a Thursday note and raised its price target to $78 per share from $66. Jefferies' new forecast implies about 16% upside from Wednesday's close. Mondelez's portfolio of chocolate products includes Oreo and Chips Ahoy cookies. "Cocoa inflation has been a headwind to profit recently, although with an improving cocoa supply/demand outlook, limited volume hit despite high cocoa-driven price increases, and strong execution capabilities, the company is positioned well to recover input cost inflation and grow faster vs. center-store peers," analyst Scott Marks said. Cocoa futures are down more than 37% year to date after hitting a record high in December. Marks also said Mondelez is "advantageously positioned in faster-growth snacking categories with exposure to faster-growth markets relative to many of its US peers, and with a well-positioned balance sheet." The analyst added that while there are signs that the U.S. consumer remains under pressure, strength in Europe and the overall cocoa market should both be tailwinds for Mondelez. "While U.S. retail sales data suggests a still pressured consumer, we believe Europe dynamics, strong execution, and an improving cocoa outlook position MDLZ well for profit upside in '26 and beyond," he said. Mondelez International shares, which are up 13% year to date, rose about 1% in the premarket after the Jefferies upgrade. MDLZ YTD mountain MDLZ year to date Analysts are mostly bullish on Mondelez. Of the 29 who cover it, 19 rate it a buy or strong buy, LSEG data shows.
Business Insider
16-07-2025
- Business
- Business Insider
Walmart Stock (WMT) Wilts as U.S. Summer Shoppers Eat Upmarket
Americans rediscovering the finest things in life when it comes to food has left Walmart (WMT) with a sour taste in its mouth. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Posh Nosh According to a new research report from Scott Marks, analyst at Jefferies, demand for premium food during June helped boost sales at rival Amazon's (AMZN) Whole Foods stores. However, it was less fruitful news for Sprouts Farmer Market (SFM) which experienced a slight deceleration. The Jefferies report added that grocery sales generally did well with Target (TGT) declines 'easing further' and Walmart and Kroger (KR) seeing growth acceleration. There was less good cheer for Walmart, however, with Sam's Club suffering as discount demand slid during the month. Walmart's stock dropped 0.6% given the importance of grocery to the company's overall revenue. Further, Target's app downloads and app usage metrics got worse in June, leading it to hold on to its rankings near the bottom of retailers on both fronts. Inflation Challenge Returning to Kroger, Jefferies said new management at the company had helped 'increase focus on the consumer and efficiency' including in its e-commerce channels. The figures come at an important time for the U.S. consumer who is being battered by higher inflation and general concerns over the state of the domestic and global economy. A lot of this pressure has come from President Trump's tariff policies forcing retailers like Walmart – known for its focus on value – to hike prices. It may come as a surprise then to Walmart that consumers are now instead flocking to premium sellers like Whole Foods, rather than discount. But with inflation once more on the rise it could be a different picture in July. Is WMT a Good Stock to Buy Now? On TipRanks, WMT has a Strong Buy consensus based on 28 Buy ratings. Its highest price target is $120. WMT's stock consensus price target is $111.33 implying a 16.85% upside.
