Monness Crespi Maintains Buy on Sodastream after Father's Day Sales

Monness Crespi has published a research report on Sodastream (NASDAQ: SODA) commenting on the company's Father's Day sell through of products.

In the report, Monness Crespi writes, "The stock is trading at 18x our 2012 EPS estimate despite guidance for 33% top line growth this year and the potential to increase its annual EPS from $1.70 to $10 over the next few years. As noted in our initiation report, we estimate the U.S. has the potential to contribute $4.00 per share to earnings at only 3% household penetration and other new markets, combined, have the potential to contribute another $4.00 per share to earnings at 3% household penetration. The company has a strong balance sheet with $2.60 per share in net cash and, to date, management has executed exceptionally well. We believe the company will continue to beat estimates in 2012 and the stock will ultimately follow earnings higher."

Monness Crespi maintains its Buy rating and $70 PT on Sodastream, which is currently trading up 4.49% from yesterday's $35.43 closing price.