By Brian Schmeer:

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Summary Recommendation

SodaStream’s (SODA) management is executing their strategy at all aspects of their business. Having sought aggressive expansion in the United States, the company has now established a large and impressive distribution network that limits future competition. American revenue is growing at over 100% year over year and the company has routinely crushed earnings estimates. Analyst recommendations have been positive and are continuing to improve. My valuation of the company yielded an implied stock price of $ 48, confirming the stock as a strong buy. Potential successful product developments and expansion in Asian markets, particularly Japan, represent opportunities for further revenue growth not incorporated in my valuation.

The Business

SodaStream develops, manufactures, and sells home carbonation systems that enable consumers to transform ordinary water into carbonated soft drinks and sparkling water. The company also manufactures and sells consumables consisting of C02 refills, reusable carbonation bottles