Short Interest: 35%
Analyst Predicted Upside: 12%
SodaStream (SODA), which has far outpaced the market’s strong first half of 2013, has the lowest projected upside of this bunch, according to Thomson analysts.
Yes, Deutsche Bank downgraded the stock in mid-May from “buy” to “hold,” but Oppenheimer and Barclays have reiterated their calls to “overweight” and “outperform,” respectively, since then, with the latter boosting its price target to triple digits — 40% more than SODA’s current price tag of $71.
Of course, the shorts think SodaStream — both the machine and the company behind it — is nothing but a fad … and one that will fade soon. Although overall short interest has been gradually declining, it still made up a whopping 35% of the float as of the most recent short data out June 14.
SODA shares did slip recently after talk of buyout interest from PepsiCo (PEP) and Coca-Cola (KO) fizzled. But since then, the upward trajectory has resumed. So far in 2013, SODA has gained around 60% year-to-date, including a nearly 3% climb yesterday.