SodaStream shares rise on analyst "Buy" rating
Shares of fizzy drinks machine maker SodaStream rise on "Buy" investment rating from KeyBanc
KeyBanc Capital Markets initiated coverage of SodaStream on Wednesday with a 'buy' rating and a bold $70 price target for its stock.
Analyst Akshay Jagdale said the soda machine maker is a well-run company and expects the number of homes using the product to more than double to 13 million by 2015.
Shares rose more than 5 percent in midday trading.
SodaStream, which is based in Israel, makes beverage carbonation systems that allow consumers to turn tap water into sparkling water and carbonated soft drinks. Besides selling the machines, it also makes money by selling gas refills and flavors for it.
Despite rumors that competitors are hitting the market soon, Jagdale said that SodaStream "will remain the leader in the home carbonation category and, as such, we view the stock as the best way to play this trend."
A representative at SodaStream declined to comment.
Shares of SodaStream International Ltd. rose $2.71 to $51.13. Its shares are down 34 percent from their 52-week high of $77.80 in June. They are up 8 percent in the last 12 months.