Mondeléz International (MDLZ)

[EZ2]

MARKET TALK: Kraft, Mondelez Look Fairly Valued to Janney

10/12 10:06 AM



10:06 EDT - Janney starts both Kraft Foods Group (KRFT:$46.53,00$0.07,000.15%) and Mondelez (MDLZ:$27.23,00$-0.01,00-0.04%) with neutral ratings, liking aspects of both of the companies but not the shares at current valuations. Firm sees "lots of potential in the new KRFT," including a huge dividend payout, "refreshingly realistic guidance that doesn't fixate on a volume or revenue growth target" and a slow-growing grocery business that's " out-punching U.S. peers." But shares a bit too pricey vs peers. At MDLZ, there's a huge opportunity to "exploit the unique combination of gross margins and growth" of the confectionary business in emerging markets, but other parts of the business offset that huge potential. KRFT up a fraction at $46.57; MDLZ off a shade at $27.20. ([e-mail]; @pziobro)
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10-12-121006ET
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