Sodastream International Ltd (SODA): Where Can Shares Go From Here?

Even if the company did come under pressure (ha!) from another competitor, it may still succeed just given its prevalence in the market. Green Mountain has had no trouble overcoming the Starbucks Corporation (NASDAQ:SBUX) Verismo brewer. It doesn’t even seem to matter that the Starbucks model brews more kinds of coffee and comes with the Starbucks Corporation (NASDAQ:SBUX) branding. Green Mountain’s early dominance made it too difficult for other companies to overcome.

The bottom line is that Sodastream International Ltd (NASDAQ:SODA) still has a lot of room to run, with margin expansion on the horizon. I’m still not willing to say that it’s a “hold forever” company, but it might be a good investment over a shorter timeline. The downside is that the stock’s rapid rise has resulted in a P/E pushing 30, but that’s right in line with Green Mountain and less than Starbucks. I’ll leave it to you to decide if it’s worth it.

The article Why I’m Reconsidering SodaStream originally appeared on Fool.com and is written by Andrew Marder.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool recommends Green Mountain Coffee Roasters. It recommends and owns shares of SodaStream and Starbucks.

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