SodaStream: We Remain Cautious On The Shares, Says William Blair
In a research report published October 7, William Blair analyst Jon Andersen assigned a Market Perform rating on Sodastream International (NASDAQ:SODA), following the company’s preliminary third-quarter sales and earnings, which were below the analyst and consensus expectations. No price target was provided.
Andersen noted, “Third-quarter sales are projected to be about $125 million, well below our estimate of $157 million and the consensus of $154 million. Operating income is forecast to be $8.5 million, compared with our estimate of $18 million and the consensus of roughly $17 million. The primary driver of the shortfall was underperformance in the U.S. business, most notably lower-than-expected demand for soda makers and flavors.”
The analyst concluded, “While we continue to believe that there is a longer-term opportunity for greater global adoption of home beverage carbonation, we remain cautious on the shares given softness in the United States, lack of visibility in Europe, and the prospect of addition competition in 2015.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jon Andersen has a total average return of 20.7% and a 62.5% success rate. Andersen is ranked #810 out of 3319 analysts.