SodaStream Surges on Green Mountain Profit: Israel Overnight
SodaStream International Ltd. (SODA) rose the most in three weeks on bets the Israeli producer of homemade soda machines will repeat the earnings surprise of consumer products companies such as Green Mountain Coffee Roasters Inc. (GMCR)
Shares of the Airport City, Israel-based company climbed 8.8 percent to $70.79 yesterday in New York, the biggest increase since July 1. SodaStream is up 254 percent since its Nov. 2 initial public offering on the Nasdaq Stock Exchange. The advance is the biggest among 177 companies that had their offerings since then, according to data compiled by Bloomberg.
Green Mountain of Waterbury, Vermont, jumped 16 percent yesterday after giving an annual profit forecast that exceeded analysts’ estimates on demand for its Keurig brewing machine. SodaStream, which is in 4.5 million homes in 41 countries, will probably say on Aug. 11 that second-quarter sales rose 46 percent to $71.2 million, according to the median forecast of six analysts surveyed by Bloomberg.
“The company is going up because results were pretty good for Green Mountain,” said Josef Schuster, the founder of IPOX Schuster LLC, who owns SodaStream shares. “There’s big demand for these specialty consumer products right now.”
The Bloomberg Israel-US 25 Index of the biggest Israeli companies traded in the U.S. climbed the most in a week, rising 0.9 percent to 98.45 yesterday. The gauge is down 5 percent this year. Israel’s benchmark TA-25 Index dropped 1.8 percent and has lost 7.1 percent this year, or 4 percent in dollar terms.
SodaStream trades at 104 times reported profit, while shares in the Nasdaq Composite Index fetch an average 16 times earnings, according to data compiled by Bloomberg.
“These multiples are justified in our view given our expectations for rapid top- and bottom-line growth for the foreseeable future,” Joseph Altobello, an analyst at Oppenheimer & Co., wrote in an e-mailed report yesterday.
Shares of SodaStream will increase 13 percent to $80 in the next 12 months, Altobello wrote. He raised his price estimate from a previous forecast of $60.
“SODA remains a compelling growth story as the company continues to expand its brand globally, most notably in the U.S.,” Altobello wrote.
SodaStream products are available in about 7,000 retail stores in the U.S., including Best Buy and Bed Bath & Beyond, up from over 4,000 in early March and 1,300 at the beginning of 2010, according to Oppenheimer.
Shares of Winston-Salem, North Carolina-based Primo Water Corp. (PRMW), which provides purified bottled water and water dispensers, climbed the most in a month yesterday, advancing 4.8 percent to $14.54.
Israel, whose population of 7.7 million is similar to Switzerland’s, has 57 companies traded on the Nasdaq, the most of any country outside the U.S. after China. It is also home to the largest number of startup companies per capita in the world.
Israeli technology companies raised $569 million in capital during the second quarter of 2011, the most in two years and up from $343 million in the same period last year, according to the Israel Venture Capital-KPMG Quarterly Survey released July 13.
Israel’s stock market was upgraded to developed market status by MSCI Inc. in May 2010, the same month the 63-year-old country was accepted to the Organization for Economic Cooperation and Development.
The shekel fell 0.4 percent to 3.4250 per U.S. dollar by 5 p.m. in New York. The currency has increased 10 percent versus the dollar over the past 12 months, the third-best performer among 10 emerging markets in Europe, Middle East and Africa tracked by Bloomberg.
ClickSoftware Technologies Ltd. (CKSW) fell to the lowest level in two months, dropping 4.1 percent to $9.13. The maker of software used to schedule deliveries and maintenance online said second- quarter net income rose to $3.5 million from $3.3 million.
Teva Pharmaceutical Industries Ltd. (TEVA) gained for the first time in five days, rising 1.7 percent to $46.54. The Tel Aviv- traded shares fell 2.2 percent to 157.10 shekels, or the equivalent of $45.85.
The world’s largest maker of generic drugs said its unit will sell Camrese as the authorized generic version of the contraceptive Seasonique.
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