Deutsche Bank Maintains Bullish Stance On SodaStream (SODA) Following Q3 Results
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Price: $143.68 --0%
Rating Summary:
3 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 8
Rating Summary:
3 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 8
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Deutsche Bank reiterated its Buy rating and $40 price target on SodaStream International (NASDAQ: SODA) following stronger-than-expected results Wednesday.
The firm said SODA "remains in the early stages of a distribution expansion story with considerable room for further store expansion, increased household penetration off a low base, and margin expansion via fixed cost leverage and better profits per media dollar spent."
The company continues to aggressively build out its retail footprint in the U.S. in an effort to drive increased household penetration of its machines, the firm notes.
Sales in all regions were above the firm's model, while sales of both starter kits and consumables also above noting however that flavor units were up only 8%. GM of 53.5% was 1 pt below their model on higher soda maker sales which are lower GM. Operating margin of 14.6% was up 1.8 pts YoY and 4.6 pts above their model on significantly lower G&A/Sales ratio as sales far outpaced G&A growth. CFFO of -EUR2,693m was 10% better YoY.
Net income could prove conservative, the firm said. "While long-term potential is significant, with roughly 80% gross margin on CO2 canister refills, driving customer usage in the U.S. is essential to unlocking the potential high-margin, annuity refill business that has worked so well in Western Europe."
For an analyst ratings summary and ratings history on SodaStream International click here. For more ratings news on SodaStream International click here.
Shares of SodaStream International closed at $34.11 yesterday.
The firm said SODA "remains in the early stages of a distribution expansion story with considerable room for further store expansion, increased household penetration off a low base, and margin expansion via fixed cost leverage and better profits per media dollar spent."
The company continues to aggressively build out its retail footprint in the U.S. in an effort to drive increased household penetration of its machines, the firm notes.
Sales in all regions were above the firm's model, while sales of both starter kits and consumables also above noting however that flavor units were up only 8%. GM of 53.5% was 1 pt below their model on higher soda maker sales which are lower GM. Operating margin of 14.6% was up 1.8 pts YoY and 4.6 pts above their model on significantly lower G&A/Sales ratio as sales far outpaced G&A growth. CFFO of -EUR2,693m was 10% better YoY.
Net income could prove conservative, the firm said. "While long-term potential is significant, with roughly 80% gross margin on CO2 canister refills, driving customer usage in the U.S. is essential to unlocking the potential high-margin, annuity refill business that has worked so well in Western Europe."
For an analyst ratings summary and ratings history on SodaStream International click here. For more ratings news on SodaStream International click here.
Shares of SodaStream International closed at $34.11 yesterday.
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