Surge in Cocoa Prices Shows Why Hershey Bets on Derivatives
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2025
0mins
Should l Buy MDLZ?
Source: WSJ
Impact of Cocoa Prices on Candy Companies: Record-high cocoa prices are negatively affecting candy companies, highlighting the importance of derivatives markets for financial relief.
Hershey's Financial Gains: Hershey reported a $460 million pretax gain from commodity derivatives last year, contributing to a total profit of $2.22 billion.
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Analyst Views on MDLZ
Wall Street analysts forecast MDLZ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MDLZ is 66.82 USD with a low forecast of 62.00 USD and a high forecast of 84.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
13 Buy
5 Hold
0 Sell
Moderate Buy
Current: 60.310
Low
62.00
Averages
66.82
High
84.00
Current: 60.310
Low
62.00
Averages
66.82
High
84.00
About MDLZ
Mondelez International, Inc. is a snack company. The Company’s core business is making and selling chocolate, biscuits and baked snacks. The Company also has additional businesses in adjacent, locally relevant categories including gum and candy, cheese and grocery and powdered beverages. Its portfolio includes global and local brands such as Oreo, Ritz, LU, Clif Bar and Tate’s Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka and Toblerone chocolate. The Company’s segments include Latin America, AMEA, Europe and North America. It sells its products in over 150 countries and has operations in approximately 80 countries, including 147 principal manufacturing and processing facilities across 46 countries. It sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and other retail food outlets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Wall Street Analysts Adjust Ratings
- Analyst Rating Updates: Top Wall Street analysts have adjusted their ratings on several companies, reflecting the latest market perspectives, although specific company names and rating changes were not detailed.
- Market Reaction Insight: Investors considering buying WDC stock may find analysts' opinions influential in their decision-making, especially in the current market environment where rating changes can trigger stock price fluctuations.
- Impact of Rating Changes: Upgrades and downgrades from analysts typically have a direct effect on a stock's short-term performance, prompting investors to closely monitor these changes to optimize their investment strategies.
- Transparent Information Source: Benzinga provides comprehensive information on analyst rating changes, and while specific ratings were not disclosed, investors can still access more details through their analyst ratings page.
See More
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- Concerns Over AI Impact: The selloff was driven by concerns regarding the implications of the artificial intelligence boom for software companies.
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