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Beverage Giant Partnership with SodaStream (SODA) More Likely than Buyout - Analyst

June 6, 2013 11:53 AM EDT
Get Alerts SODA Hot Sheet
Price: $143.68 --0%

Rating Summary:
    3 Buy, 13 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 6 | Down: 3 | New: 1
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One of the biggest stories on Wall Street Thursday is the wild speculation surrounding home beverage maker SodaStream (NASDAQ: SODA). Shares spiked over 30% in pre-open trading Thursday amid reports PepsiCo (NYSE: PEP) would acquire the company for $2 billion. PepsiCo later flatly denied the report. While the stock price collapsed, the speculation didn't end. A separate report from Globes said the company was in talks with Coca-Cola (NYSE: KO) too.

JPMorgan analyst John Faucher weighed in on today's speculation. He said while Coke and Pepsi are more aware of SODA now than they were 2 or 3 years ago, some sort of partnership would be much more likely than an outright acquisition. "We don't see much in a way of distribution leverage by combining, which is what we believe you need to justify a deal," Faucher said.

The firm has a Neutral rating and $70 price target on SODA, an Overweight rating on PEP and a Neural rating on KO.

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 $69.35 yesterday.


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