Sodastream Gets a Buy Rating from Susquehanna

Susquehanna analyst Pablo Zuanic maintained a Buy rating on Sodastream (NASDAQ: SODA) yesterday and set a price target of $118. The company’s shares closed yesterday at $87.52.

Zuanic commented:

“Management called 1Q an “anomaly” (and explained why), reaffirmed guidance for 2018, and provided greater color on the company’s great runway for growth. The platform added 1.5Mn net new households globally in 2017, or 14% growth. The economics continue to improve (we estimate c10% price/mix gains in 1Q18), with machine gross margins now at about 30%, and gas refills as per our estimates well above 80%. Based on comps, and the takeover of the French business (its third-largest market) from a distributor model to now direct, we estimate the year will be 2H loaded. Despite the stock’s great two-year run, we continue to see value. SODA trades at 16.3x our CY19 EPS estimate ex cash, despite EPS growth potential well north of 20%. Our December ’18 price target is $118.”

According to TipRanks.com, Zuanic is a 3-star analyst with an average return of 3.4% and a 49.2% success rate. Zuanic covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners, Constellation Brands Inc, and Anheuser-Busch Inbev Sa.

Sodastream has an analyst consensus of Moderate Buy, with a price target consensus of $103.33.

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Based on Sodastream’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $18.57 million. In comparison, last year the company had a net profit of $14.73 million.

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SodaStream International Ltd. operates as a holding company, which engages in the development, manufacture, distribution, and marketing of home carbonation systems. Its products include drink maker machines, soda caps, carbonators, reusable carbonation bottles, and flavored syrups.