Mondelez International's (MDLZ) Q2 setup remains attractive, with potential for modest upside to organic sales expectations driven by stronger execution in North America and ongoing momentum in emerging markets, UBS Securities said in a note Monday.

The company is scheduled to report Q2 results on July 28.

While concerns around H2 phasing, European demand and higher cocoa costs have weighed on shares in recent weeks, Mondelez remains one of the more favored names across the packaged food sector, according to the note.

Although investor sentiment moving forward will likely hinge on the magnitude of the earnings recovery next year, the brokerage does not see material risk to near-term estimates and believes a solid Q2 could be enough to support the stock, UBS said.

Mondelez will likely reiterate its 2026 outlook. The brokerage forecasts Q2 and full-year EPS of $0.67 and $3.07, respectively.

UBS kept a neutral rating on Mondelez International with a price target of $64.

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