Mondelez International's (MDLZ) Q1 results were hampered by cocoa cost pressures but strong pricing execution more than offset a volume/mix decline, RBC Capital Markets said Wednesday in a research note.

The result was 3.1% year-over-year organic revenue growth during the quarter, RBC said.

Mondelez reported Q1 adjusted EPS late Tuesday of $0.74, down from $0.93 a year earlier on revenue of $9.31 billion, up from $9.29 billion a year ago.

"Despite the persistent external headwinds in packaged food, we continue to see MDLZ as a diamond in the rough given its advantageous strategic position as a true global company, and we believe its mgmt. team is navigating the challenging circumstances effectively," RBC said.

Based on the company's Q1 results and outlook provided by management, RBC raised its estimates for fiscal 2025 net revenue growth to 5.1% from 2.6% and EPS to $3.02 from $2.87 given the more favorable FX outlook.

RBC raised its price target on the stock to $71 from $69, while maintaining an outperform rating.

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