Deal With Green Mountain Gives Coke Edge Over SodaStream
Coca-Cola Co. (NYSE:KO), Green Mountain Coffee Roasters (NASDAQ:GMCR), and SodaStream International (NASDAQ:SODA) investors were busy Wednesday after Coke announced that the company is buying a 10 percent stake in Green Mountain for $1.25 billion.
Following the announcement, Green Mountain’s stock soared, while SodaStream’s dropped. As of Thursday at the close, Green Mountain shares were up 26.24 percent, at $102.10, while Sodastream’s were up 7.15 percent, at $38.85. Coke sat at $38.03, up 1.12 percent. Many analysts raised their targets on Green Mountain while downgrading SodasStream.
$GMCR – Jagdale raises his target on Green Mountain to $150/sh this AM – up from $100. Downgrades Sodastream (SODA) to Hold.
— Notable Calls (@thenotablecalls) February 6, 2014
Coke’s announcement on Wednesday caused significant stock turbulence because the new Coke-Green Mountain deal signals that those two parties could be poised to benefit in the fast-growing at-home beverage industry, while SodaStream could be in trouble.