SODA...Why Susquehanna Thinks Sodastream Is Worth $24/Share

In a report published Tuesday, analysts at Susquehanna Financial Group initiated coverage of

with a Positive rating and a price target of $24. The analysts believe that there could be upside potential to the price target if there is acceleration in sales and M&A activities overseas. The analysts believe that

and

are likely to dominate the US markets, "with Keurig Kold becoming the de facto market technology." However SodaStream;s overseas market is both profitable and growing, which is not reflected in the stock price yet. "Also, if indeed SODA is ahead of the industry in developing a combined hot/cold system, SODA could become an M&A target," the analysts added. According to Susquehanna, "Putting a conservative 9x 1yF EV/EBITDA on SODA's non-US business (fully-costed – i.e. including corporate expenses on a proportionate basis) would value the stock at $24 by April 2016." The analysts believe that exiting the US market could be beneficial for the company's stock.