Janney Capital Markets analyst Mitchell Pinheiro is initiating coverage of the home-based soda maker with a buy rating, encouraged by the Israeli company's stateside momentum.
SodaStream's growth has been undeniable. It grew revenue by 38% -- and adjusted earnings soared 161% -- in its most recent quarter. The product's popularity continues to grow, evidenced by its financial metrics and its broadening retail last year. Bed Bath & Beyond
Pinheiro predicts market penetration in 3% of the country's home in two years. SodaStream is already in 20% of Swedish homes, though the United States is obviously larger. We also go through quite a bit of pop over here.
This is the kind of niche market that may never cause PepsiCo
Pinheiro is setting a $60 price target on SodaStream. The stock has already doubled off its November IPO at $20. The analyst is fully aware that competition is brewing. Primo Water
I have felt for some time that the growing bearish arguments on SodaStream were as flat as uncarbonated water. At least I'm not alone in my bullishness now.
If you want to see how the cola wars play out, add SodaStream International to My Watchlist.