UPDATE: Stifel Upgrades Sodastream International Ltd. to Hold on Balanced Risk/Reward

In a report published Thursday, Stifel analyst Jim Duffy upgraded the rating on

from Sell to Hold. In the report, Stifel noted, “While we believe SODA's global fundamentals remain challenged, have issue with the strategy that emphasizes growth over earnings and cash flow, and remain bearish on growth potential, pressure on SODA shares both since the Oct. 29 3Q report and year to date (-13.6% and -7.9% respectively, compared to the S&P 500 +2.5% and -1.3%), in our view, puts risk/reward more in balance. Specifically, we see the combination of cost structure flexibility (we estimate $180mn in FY14 sales and marketing expense – largely discretionary) and a global installed base which should settle and stabilize around 7.5mn-8.0mn users in FY15 as embedded capacity for incremental earnings power and cash flow.” Sodastream International Ltd. closed on Wednesday at $18.53.