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La Croix’s Seltzer Bubble May Be Ready to Burst

  • Bulls hope for more distribution or M&A for National Beverage
  • Potential buyers scoop up seltzer enterprises with IP, instead
Photographer: Randy Shropshire/Getty Images

The maker of cult beverage La Croix has seen its shares jump 120 percent in the past year. Driven by seltzer-sipping millennials, it’s a run-up that a few analysts say is at risk of popping.

"It’s not that we don’t like the company, it’s that it’s too expensive," Credit Suisse analyst Laurent Grandet said in a phone interview. He rates the $106 stock at underperform with a price target of $86 a share.