SodaStream’s Outlook Bucks Monthly Drop: Israel Overnight
SodaStream International Ltd. (SODA) surged the most in 11 weeks in New York after the Israeli maker of home soda machines raised its sales outlook, trimming a monthly decline that was driven by waning speculation of a buyout.
Shares of the Airport City, Israel-based company jumped 12 percent to $65.08 yesterday. The Bloomberg Israel-US Equity Index rose 6.5 percent last month, the most since October 2011, led by Cellcom Israel Ltd. (CEL) and Partner Communications Co. The shekel extended its biggest monthly gain this year after Bank Hapoalim Ltd.’s chief economist Leo Leiderman was nominated as the next Bank of Israel governor.
SodaStream said yesterday that 2013 sales will increase about 30 percent to $567.2 million, up from a previous forecast of 27 percent. Revenue for the three-month period ending June 30 beat analysts’ estimates for a ninth consecutive quarter, according to data compiled by Bloomberg. The shares tumbled 10 percent last month, the biggest slump since March 2012, after the New York Post reported July 9 that the company is struggling to attract buyout interest.
“People are underestimating the earnings potential of the company,” Jim Chartier, an analyst at Monness Crespi Hardt & Co. in New York, who has a buy recommendation on the stock, said by phone yesterday. “They continue to beat sales and earnings projections this year and next year, and as that occurs, the stock continues to go higher.”
Shares of SodaStream have surged 45 percent so far this year, compared with a 12 percent gain for the measure of the largest Israeli companies traded in New York. On average, the analysts surveyed by Bloomberg predict the stock will rally 22 percent to $79.14 over the next 12 months.
The company also said yesterday that sales for the second quarter rose 29 percent to $132.4 million and net income grew 36 percent to $12.9 million. The outlook will probably be raised again before the end of the year, according to David Kaplan, an analyst at Barclays Plc in Tel Aviv, who has the equivalent of a buy recommendation on the stock.
“We’re confident that we have established a strong foundation to drive momentum through the second half of the year and beyond,” Daniel Birnbaum, chief executive officer of SodaStream, said in a conference call with analysts yesterday.
In June, PepsiCo. Inc. denied a report in newspaper Calcalist that it was in talks to buy SodaStream for more than $2 billion, while Coca-Cola Co. declined to comment on a report by Globes daily that it may also bid for the company.
The Bloomberg Israel-US measure jumped to 97.13 last month. The TA-25 Index (TA-25) rose 0.3 percent to 1,207.59 today.
Partner, based in Rosh Ha’Ayin, Israel, surged 2.3 percent today to 27.63 shekels, or $7.76. Cellcom, Israel’s largest mobile operator, rose 1.1 percent to 40.36 shekels, or $11.34.
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