Roth Suggests Buying the Dip in SodaStream, Says Coke, Pepsi Rumors Were Never Probable

Roth Capital's Tony Brenner issued a mid-day research note on SodaStream (NASDAQ: SODA) Tuesday suggesting investors use "any price weakness here as an attractive buying opportunity."

The analyst's note comes in response to recent speculation the company will not be acquired by Coke (NYSE: KO) or Pepsi (NYSE: PEP). According to Brenner, "such a transaction never made sense" and was viewed by Roth as "highly improbable."

While Brenner shrugged at an outright purchase by Coca-Cola or Pepsi, he said he "would not be shocked should other consumer companies be interested in such an acquisition. However, no other names have surfaced..."

Instead, Brenner pointed to "significant organic growth potential" for SodaStream. The analyst noted added "retailer penetration, alliances with appliance makers Samsung and KitchenAid, potential expansion into the away-from-home office and foodservice markets, and continuing international expansion" possibly leading to 25-plus percent annual income growth.

Brenner maintains a Buy rating and $75 price target on shares of SodaStream.

SodaStream shares are down 5.3 percent to $61.87 at last check.