Market Only Big Enough for One Product, and It's Sodastream's (SODA) -Deutsche Bank
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Price: $143.68 --0%
Rating Summary:
3 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Shares of Sodastream (Nasdaq: SODA) pushed off session lows following a reassuring intraday research note from Deutsche Bank's Bill Schmitz.
The stock fell sharply this morning amid prospects for the launch of a competing product, the Primo Flavorstation from Primo Water (Nasdaq: PRMW). After gapping about 1.4 percent higher earlier, shares plunged as much as 9.8 percent as word of the new device began making the rounds.
On the Primo product, the Deutsche Bank analyst believes "...there is not really room for 2 players in the category yet, and SODA is reasonably entrenched with growing awareness and expanding distribution...." Schmitz said a possible issue for Soda is the ability of "Primo to exchange cannisters at its bottled water distribution sites..."
Schmitz suggested the move could also be related to consumer growth investors who have "cold feet following Green Mountain concerns..."
Soda shares last traded at $29.20, down about 8 percent from Tuesday's close.
The stock fell sharply this morning amid prospects for the launch of a competing product, the Primo Flavorstation from Primo Water (Nasdaq: PRMW). After gapping about 1.4 percent higher earlier, shares plunged as much as 9.8 percent as word of the new device began making the rounds.
On the Primo product, the Deutsche Bank analyst believes "...there is not really room for 2 players in the category yet, and SODA is reasonably entrenched with growing awareness and expanding distribution...." Schmitz said a possible issue for Soda is the ability of "Primo to exchange cannisters at its bottled water distribution sites..."
Schmitz suggested the move could also be related to consumer growth investors who have "cold feet following Green Mountain concerns..."
Soda shares last traded at $29.20, down about 8 percent from Tuesday's close.
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