Sodastream Earnings Potential Not Reflected By Consensus, Stock Has $6.50 Upside: Susquehanna

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In a report published Tuesday, Susquehanna analyst Pablo Zuanic maintained a Positive rating on
Sodastream International LtdSODA
, with a price target of $27, after a meeting with the company's top officials. Sodastream's US relaunch is on track and its new products are expected to reach
Bed Bath & Beyond Inc.BBBY
stores in late July and other stores from September onwards. The company also plans to open other retail stores with the global rollout of its new products expected to be completed by 1Q16. The company is aiming to reposition itself from being a "soda player" to one focused on sparkling water: both plain and flavored. "With plain sparkling water accounting for almost 70% of "equivalent consumed volumes, the new flavors will be key to SODA's growth, analyst Pablo Zuanic wrote. Sodastream's future top-line growth is expected to be driven by wider gas canister availability. The company also plans to launch a hot/cold system by 2H16 and may partner with other companies in doing so. "SODA's apparent technological edge should make it an attractive acquisition target to various appliance and beverage players, in our view," Zuanic added. "We rate SODA Positive on what we think is an attractive valuation, not reflecting the current state of the business, the turnaround upside, and M&A optionality," Susquehanna noted in the report.
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Posted In: Analyst ColorReiterationAnalyst RatingsSusquehanna
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