SodaStream International Ltd. (NASDAQ: SODA) stock screamed higher on reports that the company will be partnering with PepsiCo Inc. (NYSE: PEP) for a small-scale, limited test. SodaStream produces a system for making homemade carbonated beverages.
The 6-K form that SodaStream filed with the U.S. Securities and Exchange Commission (SEC) stated:
Further to press reports that were published today, SodaStream International Ltd. (the “Company”) confirms that as the leader of the at-home, make-your-own beverages, category it has entered into an agreement with PepsiCo, Inc. (“PepsiCo”) specifically focused on a small-scale, limited time test to make certain of PepsiCo’s brands available for use on the Company’s system. The limited test is scheduled for later this year. Consistent with the Company’s practice to date, the Company is also exploring multiple relationships with other leading beverage brands.
Exceptionally, the Company would like to stress that this is a limited test and that there are currently no discussions between the Company and PepsiCo concerning any other form of broader business collaboration. Following this report and consistent with past practice, the Company undertakes no obligation to provide any updates and will not comment on rumors or speculation.
Shares of SodaStream traded up almost 17% at $24.76 immediately following this announcement and as high as $26.23 early Friday.
247 Wall St. would like to hone in on this one excerpt from the release:
Exceptionally, the Company would like to stress that this is a limited test and that there are currently no discussions between the Company and PepsiCo concerning any other form of broader business collaboration.
SodaStream has a consensus analyst price target of $30.14 and a 52-week trading range of $20.13 to $64.00. Its market cap is about $518 million.