Street View: Mondelez positioned for growth on higher prices

Cadbury-parent Mondelez's MDLZ.O shares beat Wall Street estimates for first-quarter profit on Tuesday, driven by high prices for its chocolates and biscuits

Company's shares up 1.5% to $66.65 premarket

COCOA CRUNCH TIME

RBC Capital Markets ("outperform," PT: $71) sees MDLZ as "diamond in the rough" because of its strong global position, despite ongoing challenges in packaged food industry

Morgan Stanley ("overweight," PT: $72) expects faster revenue growth driven by better market share performance and momentum in company's chocolate portfolio due to stronger pricing growth

Piper Sandler ("neutral," PT: $66) says consumer sentiment in Europe is better than in the United States, and Mondelez is implementing significant phased pricing increases

MDLZ is adjusting prices to offset cocoa costs and to anticipate future cocoa prices, aiming to protect long-term sales volume, Piper Sandler says

Morningstar (fair value: $73) says "Mondelez will need to marry on-trend innovation with affordable price points, this was the impetus behind its launch of products priced at $3 or less"