SodaStream International Ltd.
) jumped to a 52-week high of $77.80 on Monday, Jun 11, on market
rumors of its acquisition by snack and beverage giant
The closing price of the Israeli home soda-machine maker on
Jun 10 was $76.11, representing a huge 1-year return of about
119.5%. Average volume of shares traded over the last three
months stands at approximately 1541K.
Last week, an Israeli newspaper reported that PepsiCo was
considering buying SodaStream. It is rumored that the purchase
price was a whooping $2 billion. PepsiCo has however, denied the
media reports to Reuters.
SodaStream commands a global leadership position in the home
beverage carbonation market. Its soda-making systems offer a
healthier and a convenient way to enjoy flavored carbonated sodas
at home than the traditional soft drinks sold by PepsiCo and
The Coca-Cola Company
and Dr Pepper Snapple Group Inc.
We believe that SodaStream would make a strategic buy for
PepsiCo. PepsiCo could benefit from solid demand for SodaStream's
products in the U.S., its expanding strategic partnerships,
enhanced marketing activities, regular product innovations,
accretive acquisitions and successful strategic investments.
These attributes have helped SodaStream deliver solid profits
over the past few quarters. In fact, the company has enjoyed
tremendous sales growth and expanded retail presence in the U.S.
in sharp contrast to sluggish soft drinks sales witnessed by the
The deal will also go in sync with PepsiCo's increasing
efforts to make low calorie beverages, non-carbonated beverages
and healthier snacks to reap benefits from shifting consumer
preference for good-for-you and health and wellness products.
Many analysts however, believe that a joint venture between
PepsiCo and SodaStream was a more likely option.
Both SodaStream and PepsiCo carry a Zacks Rank #2 (Buy).
DR PEPPER SNAPL (DPS): Free Stock Analysis
COCA COLA CO (KO): Free Stock Analysis Report
PEPSICO INC (PEP): Free Stock Analysis Report
SODASTREAM INTL (SODA): Free Stock Analysis
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