SodaStream: 'Probably The Best Growth Story In Small-Cap Stocks'

Despite a more than 100 percent return over the past year, analysts at Susquehanna Financial Group believe there is plenty of upside ahead for Sodastream International Ltd SODA's stream. The firm's Pablo Zuanic maintains a Positive rating on SodaStream's stock with a price target boosted from $79 to $90 after meeting with the company's management.

One of the biggest takeaways from the non-deal roadshow is management's commentary that the Israel-based company is seeing its products added to around one million households a year, Zuanic commented. In fact, this figure could prove to be conservative, as the company is looking to triple its household penetration rate in its biggest market, Germany, while making a push in the U.S. market.

Meanwhile, management believes that new plant efficiencies and operating leverage could yield an incremental $40 million in EBIT per year and bring its 2020 EBIT estimates to $210 million. However, this figure may be too aggressive and could prove to be $128 million as the company reinvests some cash, spend money on promotions and target new markets. Nevertheless, the company's increased focus, discipline and goals are commendable.

Bottom line, SodaStream today is a "different company from the time of the IPO" in late 2010 — it is in not only much better shape commercially, but also financially and strategically. As such, the stock is "probably the best growth story in small cap consumer packaged goods."

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SodaStream Has Quietly Had A Really Nice Run ________ Image Credit: By Tony Webster from Portland, Oregon, United States - Sodastream Bottle, CC BY 2.0, via Wikimedia Commons