SodaStream Advances as Barclays Lifts Target on Revenue

SodaStream International Ltd. (SODA), the Israeli home soda-machine maker, rallied to the highest level in almost two years after Barclays Plc boosted its price estimate by 82 percent on prospects that sales will increase.

Shares of SodaStream climbed 8.2 percent to $69.06, the highest level since August 2011. The Airport City, Israel-based manufacturer rose the most on the Bloomberg Israel-US Equity Index of the largest Israeli companies traded in New York.

Barclays raised its share-price estimate for SodaStream to $100, or 34 percent above the average projection of eight analysts surveyed by Bloomberg and 48 percent above current levels. The company will post earnings per share of $2.55 this year and $3.28 in 2014, David Kaplan, an analyst at Barclays, wrote in a report to clients today, raising his profit projections by at least 3.7 percent. Sales will increase 28 percent and 20 percent, respectively, in those years, he wrote.

“Conservative estimates for 20 percent top line growth are not priced in,” Kaplan, who has the equivalent of a buy rating for SodaStream, wrote.

Sales for the company, which makes devices that carbonate water and sells flavor packets, will reach $1 billion by 2016, from $436 million last year, Chief Executive Officer Daniel Birnbaum said at a shareholder meeting May 13. Since then, the stock has surged 21 percent, compared with a 0.7 percent gain in the Bloomberg Israel-US gauge. The rally has pushed the stock to trade at 21.4 times estimated earnings, the highest since February 2012, according to data compiled by Bloomberg.

To contact the reporter on this story: Rita Nazareth in New York at rnazareth@bloomberg.net

To contact the editor responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net

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