Analyst advised to buy shares of Oreo cookie maker and expects them to grow by 20%

Wells Fargo upgraded its rating on shares of Mondelez, which produces Oreo cookies, as well as Toblerone, Alpen Gold and Milka chocolate. The investment bank analyst now recommends buying the company's securities and expects its market value could rise by almost 20% more. It is one of the most efficient and promising players in the consumer goods segment, the investment bank said, and Morningstar called Mondelez shares a good choice for those who play the long game.

Wells Fargo analyst Chris Carey raised his rating on Mondelez shares from Neutral Equal weight, which implies a recommendation to keep the purchased securities in the portfolio, to Overweight - advice to build share, reports CNBC. The analyst's target price was revised from $68 to $78 - the new target means he expects growth of nearly 18% from the last close. "We believe Mondelez is one of the best-performing FMCG companies with the ability to deliver solid long-term growth - through expanding share in developed markets, entering new areas in emerging markets and an active M&A strategy," Carey said in a note quoted by CNBC.

He also praised the company's successful pricing policy in the chocolate segment: "Cocoa bean price increases in 2025 will be severe, and Mondelez has had to raise prices markedly to mitigate this pressure - especially in the key chocolate segment in Europe. However, demand in Europe has been stronger than expected, which supports the outlook for 2025, despite continued weakness in the North American market." According to the analyst, this gives the company the necessary maneuvering room to hold on to its guidance: smoothing out the drawdown in the U.S. while building confidence for 2026." In 2024, cocoa bean futures were expensive at a record pace due to poor weather conditions in the main regions where they are grown. Global cocoa prices have nearly tripled since 2023, reaching about $13,000 a ton in December before dropping to below $9,000, noted Bloomberg.

A Wells Fargo analyst doesn't see any major problems Mondelez could face in the near term. The company has more competitive advantages than others right now, and cocoa price growth will moderate in 2026, he predicts. "Mondelez is particularly attractive against the backdrop of a general slowdown among the major players in the sector," Carey summarized.

Mondelez shares jumped nearly 3.5% to $68.6 in trading on June 20. That was their highest since May 30, 2025. Since the beginning of the year, the company's market value is up nearly 15%. By comparison, the main U.S. stock index S&P 500 for the same period added less than 2%.

In early May, three investment firms raised their target prices on Mondelez shares: Redburn and BNP - from $71 to $75, and Berenberg Bank - from $77 to $81. Now the average Wall Street target for the company's securitiesis $72.5 - a potential upside of nearly 10%.

In November, Morningstar called Mondelez stock a good choice for investors for the long term, as the company's securities are independent of Donald Trump's policies. 

According to data from MarketWatch, of the 30 analysts tracking Mondelez securities, none recommend selling them. 19 experts recommend buying the stock (Buy and Overweight ratings), while 11 suggest holding it in the portfolio (Hold).