SodaStream Shares Higher as Longbow Sets New Buy Rating, $79 Target, Highlights Potential for Buyout

Shares of SodaStream International

are outperforming the broader equities market Wednesday following a bullish research note from Longbow's Philip Terpolilli. The stock last traded at $64.88, up 1.4 percent from Tuesday's close. Terpolilli initiated coverage on SodaStream with a Buy rating and $79 price target. The analyst believes SodaStream "has a plethora of growth opportunities over the next 18+ months that should drive better than expected top and bottom-line earnings growth." In addition to pointing out items like the company's seemingly-solid recent launch of the Source soda maker and opportunities in international markets, the Longbow analyst believes SodaStream could eventually be taken over. "...as the company reaches critical mass with its install base, the potential for either third party agreements with major soda brands or full takeout increases." Terpolilli said the stock's recent dip away from 52-week highs "creates an attractive risk/reward scenario for SODA shares heading into the 2013 holiday season." Longbow's price target represents potential upside of about 22 percent from where the stock is trading Wednesday morning.