NEW YORK (TheStreet) -- Shares of Mondelez International (MDLZ) are gaining by 0.35% to $40.16 on Monday after analysts at Credit Suisse upped their price target to $48 from $42 with an "outperform" rating.
The company makes biscuits and crackers such as Oreo cookies, Cadbury chocolates and Nilla wafers.
Mondelez has more room for operating margin expansion beyond the 15%-16% goal established for 2016, analysts said, after meeting with management.
The Illinois-based company recently announced that it will close half of the production at its South Chicago biscuit facility and will either transfer capacity to Salinas Mexico or build faster production lines in Chicago, according to the note.
This transition will vastly improve gross margins, analysts said.
Separately, TheStreet Ratings team rates MONDELEZ INTERNATIONAL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MONDELEZ INTERNATIONAL INC (MDLZ) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."