UPDATE: Barclays Downgrades SodaStream to Equalweight, Expecting Challenges Ahead
SodaStream (NASDAQ: SODA) was downgraded from Overweight to Equalweight by Barclays Monday. Analyst David Kaplan lowered his price target from $55 to $40.
The Barclays note follows fourth-quarter results and guidance from SodaStream on February 26th. Kaplan noted the company's guidance for 3 percent bottom-line growth in 2014, far below his 36 percent estimate.
Kaplan believes the company “faces challenges” on the execution, competition, and distribution fronts. His $40 price target is based on “17x 2015E EPS of $2.35.” The 17x multiple used by Kaplan is in-line with the industry average and reflects lowered growth outlook.
Shares initially opened down 3 percent to $38.27, but since have rebounded slightly; the stock last traded at $39.25, down about 0.6 percent for the session.
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