Wells Fargo Upgrades Mondelez to Overweight, Sees Strong Margin Growth Ahead

Mondelez International, Inc. (NASDAQ:MDLZ) ranks among the top stocks for an early retirement portfolio. On June 20, Wells Fargo raised Mondelez International, Inc. (NASDAQ:MDLZ) to Overweight with a price target of $78. The firm cited the company’s strong risk-reward analysis and better fundamentals in comparison to its staples peers.

Wells Fargo Upgrades Mondelez to Overweight, Sees Strong Margin Growth Ahead

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Wells Fargo outlined three main justifications for its optimistic outlook. First, despite record prices, chocolate elasticities are enduring well. The firm reported that “Europe chocolate elasticities are -0.25 YTD,” which is in line with historical norms and better than Mondelez’s estimated range of -0.4 to -0.5.

“Commodities appear neutral to 2026,” according to Wells Fargo’s commodity model, boosting confidence in margin improvement. Last but not least, Wells Fargo projects that in 2026, Mondelez International, Inc. (NASDAQ:MDLZ) would generate algorithm EPS with +3% organic sales and a 100bps increase in gross margin.

Mondelez International, Inc. (NASDAQ:MDLZ), often known as Mondelēz International, is a Chicago-based international firm that specializes in confectionery, cuisine, drinks, and snacks.

While we acknowledge the potential of MDLZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.