SodaStream (SODA) surged nearly 12% on Wednesday after news broke that the at-home soda company may sell as much as a 16% stake in its business to a "strategic entity," according to Reuters. Soda-pop stars including PepsiCo (PEP 1.34%) and Dr Pepper Snapple Group, along with Starbucks (SBUX 0.65%), are among those rumored to be interested in the deal.

Despite the surge in the stock yesterday, I believe shares of SodaStream still look reasonably priced, trading around $40 apiece. This is particularly true given the stock's PEG ratio of 0.70, which is significantly lower than the Household Durables industry average of 1.57. Here are two reasons the stock could go higher from here.

Room to grow
SodaStream operates in a lucrative and fast-growing market. This category looks so promising, in fact, that soda giant Coca-Cola (KO 0.63%) jumped in earlier this year by paying $1.25 billion for a 10% stake in Keurig Green Mountain (GMCR.DL). Before this 10-year agreement between Coke and the Keurig coffee company, Green Mountain wasn't one of SodaStream's direct competitors.

However, with Coca-Cola as a strategic partner, Keurig Green Mountain is now on track to launch its "Keurig Cold" beverage system next year. Not surprisingly, Green Mountain's new carbonated drink maker will feature Coke-branded beverage kits so users can make their favorite Coca-Cola products from the comfort of their homes. 

We knew it wouldn't be long before competitors starting piling into this space. This is especially true if you believe SodaStream's estimates that the U.S. at-home soda market potential is $40 billion. As fellow Fool Ted Cooper points out, this number "assumes at-home soda machines penetrate 100 million out of 115 million U.S. households." While that level of penetration is unlikely, there's clearly strong demand for at-home carbonation machines today.

First mover advantage
Not only does SodaStream operate in a growing market, but it also has a first-mover advantage. At the Motley Fool, we believe true Rule Breaker stocks possess a first-mover advantage in which they are the innovator that initially uncovers a niche market. It's been four years since SodaStream hit the public market, but the company finally has the attention of beverage giants like Coca-Cola and Pepsi.

Coke and Pepsi dominated the U.S. soda market before SodaStream hit the scene. But SodaStream was the first company to unlock the potential of the do-it-yourself soda market. Last year, SodaStream sold a record 4.4 million of its home soda makers, bringing the company's installed base to 7 million. To be fair, SodaStream's U.S. sales are slowing. The company forecasts sales to grow just 15% this year, down from a growth rate of 29% in 2013. 

Nevertheless, SodaStream's future still looks bright. With SodaStream machines in as many as 7 million homes globally today, the company and its products are already a brand consumers know and trust. Looking ahead, a strategic tie-up between SodaStream and Starbucks seems to make the most sense. Pepsi may seem like the obvious choice because of Coke's recent deal with Keurig Green Mountain. However, Pepsi reportedly has a deal in the works with another fizzy drink maker known as Bevyz, according to Just-Drinks.com. 

Starbucks, on the other hand, has been testing flavored sodas in a handful of its stores in Atlanta and Austin, Texas. Therefore, investing in a company such as SodaStream would be an obvious fit. For SodaStream, teaming up with Starbucks would significantly increase the company's distribution network.

Drink to this
With Sodastream's stock trading around $40 a pop today, shares still looks cheap despite the stock's rally yesterday. It's still early in the game for the at-home soda market, and SodaStream is well positioned in this market going forward.