UPDATE: Barclays Capital Downgrades SodaStream International Ltd. As Near-Term Risk Remain High

In a report published Thursday, Barclays Capital analyst David Kaplan downgraded the rating on SodaStream International Ltd. (NASDAQ: SODA) from Equal-Weight to Underweight, and lowered the price target from $40.00 to $35.00.

In the report, Barclays Capital noted, “We view the near-term execution and competitive risks as real challenges for SODA. We are onboard with management's strategy in the US including significant product placement at WMT in the summer. However, at this stage we believe the risk/reward is weighted more heavily towards risk.

"Our new $35 PT from $40 is based on 15x (from 17x previously) our new 2015 EPS of $2.30 (from $2.35). We see less risk in other companies and in its comps group and expect SODA to underperform. We downgrade our rating from Equal Weight to Underweight.”

SodaStream International Ltd. closed on Wednesday at $39.62.