SodaStream (SODA) Q2 Could be Choppy, Oppenheimer Cuts to Perform

July 12, 2013 6:49 AM EDT
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Price: $143.68 --0%

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(Updated - July 12, 2013 9:14 AM EDT)

Oppenheimer downgraded SodaStream International (NASDAQ: SODA) from Outperform to Perform. Analyst Joseph Altobello said he is stepping back ahead of what could be a choppy Q2.

"One issue likely to impact y/y comparisons in 2Q is last year's launch into [Wal-Mart] which included both a pipeline fill as well as heavy merchandising. Another issue is the ongoing launch of the new Source machine, which is likely to result in at least some level of inventory de-stocking of the older models," said Altobello.

"While none of these issues are 'new news,' we are keenly aware of the stock's tendency to react to data points, and so we fear that a potential deceleration in 2Q growth--whatever the explanation--could be used as a reason for skittish investors long the shares to look to lock in profits."

Altobello doesn't expect Soda's Q2 to fall short and he is still a believer in the viability of the home carbonation. However, in his words, "with a stock like SODA, style matters just as much as substance when it comes to quarterly results."

For an analyst ratings summary and ratings history on SodaStream International (NASDAQ: SODA) click here. For more ratings news on SodaStream International click here.

Shares of SodaStream International closed at $62.52 yesterday.

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