You can't keep a good company down - even if they maintain a
manufacturing facility in Judea.
Shares of at-home carbonation specialist SodaStream
closed up by more than 8% Monday after analyst David Kaplan of Barclays
raised the firm's price target on the stock to $100 per share.
For those of you keeping track, that's nearly 82% higher than
Barclays' previous target of $55, and it also represents a 45% premium
to Monday's closing price at just above $69 per share. All told, shares
of SodaStream are up almost 28% over the past month and 54% year to date
in 2013.
So why all the optimism?
Kaplan believes that "conservative estimates for 20 percent top
line growth are not priced in." More specifically, he thinks
SodaStream's sales will have increased 28% when all is said and done
this year, followed by another 20% increase in revenue for 2014. He also
says that as a result, earnings per share should come in around $2.55
this year and $3.28 in 2014.
...
Of course, investors have every reason to believe him; less than
three weeks ago, SodaStream management outlined a perfectly reasonable
plan to achieve sales of at least $1 billion
by 2016. In fact, that announcement was enough to quickly prompt
upgrades from analysts at both Oppenheimer and Citigroup, who both
currently hold more conservative price targets of $68 and $66 per share,
respectively.
What's more, less than four weeks ago, the Israel-based company
maintained its habit of crushing analysts' estimates by turning in solid first-quarter earnings results.
To be sure, it's hard not to be impressed with SodaStream's
first-quarter year-over-year revenue growth of 34% to $117.6 million. In
addition, adjusted earnings per share managed to increase 24% to $0.68.
Better yet, the company's razor-and-blade model is paying off, as
carbonator refill revenue increased 101% and syrup sales rose 119% from
the first quarter of 2012. Finally, soda-maker sales showed no signs of
letting up after growing 78% from the same year-ago period, and the
massive United States market should soon become SodaStream's largest.
Read the whole thing. Another failure for the BDS'ers.
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