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Why Susquehanna Thinks Sodastream Is Worth $24/Share

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In a report published Tuesday, analysts at Susquehanna Financial Group initiated coverage of SodaStream International Ltd (NASDAQ: SODA) with a Positive rating and a price target of $24. The analysts believe there could be upside potential to the price target if there is acceleration in sales and M&A activities overseas.

The analysts believe that Keurig Green Mountain Inc (NASDAQ: GMCR) and The Coca-Cola Co (NYSE: KO) are likely to dominate the U.S. 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 U.S. market could be beneficial for the company's stock.

Latest Ratings for SODA

DateFirmActionFromTo
Aug 2018B. Riley FBRDowngradesBuyNeutral
Aug 2018SusquehannaMaintainsPositivePositive
Aug 2018B. Riley FBRMaintainsBuyBuy

View More Analyst Ratings for SODA
View the Latest Analyst Ratings

 

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Posted-In: Susquehanna Susquehanna Financial GroupAnalyst Color Initiation Analyst Ratings

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