Will Walmart Help SodaStream Fizz to the Top?

SodaStream International (NASDAQ:SODA) announced it will roll out its products at Walmart (NYSE:WMT) stores in the U.S. by the end of May. Following its announcement, shares of SodaStream surged the most on record in New York.

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According to SodaStream CEO Daniel Birnbaum, the company plans to sell two of its products beginning this month at 2,900 Walmart stores across the nation. The plan was revealed after a conference call with analysts on Wednesday after the company reported earnings.

Analysts consider the move advantageous for SodaStream, as Walmart is the world’s largest retailer. According to Monness Crespi Hardt & Co. analyst Jim Chartier, Walmart is a bridge between SodaStream’s current sales at big-box retailers, and supermarkets, where they want to be selling in the future. Undoubtedly, Walmart has very high foot traffic that will help the Isreal-based company sell a lot more machines. Currently, Chartier has a “buy” rating on WalMart.

SodaStream’s first-quarter profit increased to 55 cents per share in the first quarter from 35 cents a year ago, beating the 44 cent median estimates of several analysts. Shares of the Israel-based company increased 26 percent to $36.90 by the close in New York, the sharpest rise since the company’s initial public offering in November 2010.

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