SodaStream International Ltd. jumped to a three-month high in New York after Moness Crespi Hardt & Co. said the products of the Israeli maker of soda machines are selling out at Wal-Mart Stores Inc.
SodaStream, based in Airport City, Israel, surged 6.1 percent to $37.60 by the close in New York, the highest since March 12. The shares have advanced 15 percent in 2012 and trade at 17.9 times estimated earnings, compared with a 15.8 multiple for companies on the Nasdaq Composite Index.
The number of Wal-Mart stores in the U.S. that are out of stock or have a limited number of the company’s soda makers has grown every week since June 4, according to the e-mailed Moness Crespi report dated today. Inventory of SodaStream products also decreased at Target Corp. and Macy’s Inc. following Father’s Day, the report showed. SodaStream said last month that it rolled out beverage products in 2,900 Wal-Mart stores in the U.S.
“The percentage of stores that are selling out is creeping up consistently,” Jim Chartier, a New York-based analyst at Moness Crespi, who recommends buying the stock, said by phone today. “The machines are selling well in Wal-Mart and following the same trend of all the other retailers. This is being received positively.”
Inventory was also dwindling for SodaStream beverage mixes including Kraft Foods Inc.’s Crystal Light and Country Time lemonade, the report said.
“This signals strong performance that might convince new partners to sign on with the company,” Chartier said. “Soda is doing well.”