SodaStream International Ltd. (SODA) posted a record quarterly rally, leading Israeli companies’ gains in New York, while a three-day drop in Elbit Systems Ltd. (ESLT) left it at the biggest discount to the Tel Aviv stock since June 10.
Shares of SodaStream, a maker of home soda machines, surged 46 percent in the second quarter to $72.65 on sales prospects and speculation the company might be a takeover target, while the Bloomberg Israel-US Equity Index rose 0.9 percent. The measure added 1.1 percent last week as Allot Communications Ltd. (ALLT) and Mellanox Technologies Ltd. (MLNX) jumped. Elbit, an Israeli defense developer, slumped to $42.07.
All eight analysts surveyed by Bloomberg with a price estimate for SodaStream raised their forecasts during the quarter to an average of $78.63, which implies an 8.2 percent jump from current levels. The Airport City, Israel-based company has beaten analysts’ sales projections for eight straight quarters, and the shares jumped to the highest in almost two years on June 6 after reports in Israeli media that Coca-Cola Co. or PepsiCo. Inc. were interested in buying SodaStream.
“It is an attractive asset,” Jim Chartier, an analyst at Monness Crespi Hardt & Co. in New York, who has a buy recommendation on the stock, said in a telephone interview. “At some point, SodaStream could be viewed as a takeout. The company’s consistently beaten expectations.”
PepsiCo denied a report on business website Calcalist that it’s in talks to buy SodaStream for more than $2 billion. Coca-Cola declined to comment on a report from newspaper Globes that it may bid for the company.
The Bloomberg Israel-US gauge advanced to 91.21 last week. Israel’s benchmark TA-25 Index (TA-25) regained 0.2 percent at 9:56 a.m. in Tel Aviv after it last week dropped 1.8 percent to the lowest level since Jan. 31.
SodaStream rose 2.3 percent last week, after rallying for four straight days.
Allot, which makes technology used to track wireless traffic, surged 15 percent for the week to $13.71, or 0.1 percent below its Tel Aviv shares. The Hod Hasharon, Israel-based company said June 25 that it got orders from three of the world’s top-10 telecommunications operators. The Tel Aviv shares closed the gap this morning, slipping 0.3 percent to 49.8 shekels, or $13.69.
Mellanox, an Israeli maker of equipment that speeds data transfers, gained 9.5 percent to $49.50 last week. The stock fell for a third quarter in the longest losing streak since the three-month period ending Dec. 31, 2008. Its Tel Aviv shares jumped 5.2 percent for the week to 179.60 shekels, or $49.37.
Elbit led the weekly declines in the Bloomberg Israel-US gauge, slumping 6.8 percent after reaching an almost two-year high on June 13. The stock in Israel dropped 0.6 percent to 152.9 shekels, or $42.03, this morning after declining 6.2 percent last week.
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