IB Net Payout Yields Model

Disagreeing With Analysts On SodaStream

Now that SodaStream (SODA) has finally regained some interest from the market, the analyst community can't wait to downgrade the stock. The company continues to under promise and over deliver with results beating expectations quarter after quarter. The stock though recently stalled at $65 or only roughly 20x this year's "real" earnings estimates.

The company is a leading manufacturer of home beverage carbonation systems sold at major retailers around the world with a primary target on growing in the Americas where soda usage is significantly higher than in Western Europe.

The stock has historically traded at sub-growth rate multiples for various reasons whether from the company reporting in Euros or the current focus away from adjusted earnings. The question is whether the stock will reach multiples compared to its historical and forecasted growth rates or will it remain at a cheap valuation that appears crazy.

Read the full article at Seeking Alpha.

Disclosure: Long SODA. Please review the disclaimer page for more details. 


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