Mondelez International's (MDLZ) 2025 guidance is likely to take into account the possible impact of rising cocoa prices on margins following a tough Q4, RBC Capital Markets said in a note sent Thursday.

Ahead of the company's Q4 results, the firm also said revenue growth for the quarter is likely to largely match Q3 performance as category trends continue to be weak.

RBC said it is "more cautious" on Mondelez' profitability as Q4 is expected to "bear the brunt of cocoa prices that sit near all-time-highs, and could climb even higher as confectioner peer [Hershey (HSY)] seemingly fears."

RBC has an outperform rating on the stock and a $75 price target.

"We remain bullish on MDLZ's long-term distribution opportunity, but we continue to express some caution in the near term given consumer pressures in developed markets and the overhang from elevated/rising cocoa prices," the firm said.

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