NEW YORK (AP) -- An analyst cut his rating for SodaStream on Thursday, given the at-home carbonation machine maker's lofty stock price and potentially tougher comparisons.
SodaStream's machines let people make fizzy water at home, with a variety of concentrated flavors that can be added to create different beverages.
William Blair's Jon Andersen lowered his rating on SodaStream to "Market Perform" from "Outperform." The analyst said in a client note that he still views SodaStream International Ltd. favorably — given its leading position in the at-home beverage carbonation market — but that the share price is now at the high end of its historical range.
The Israeli company's stock closed at $68.57 on Wednesday. It has traded between $33.15 and $77.80 over the past year.
"Our rating change is not based on a diminution in the outlook for home beverage carbonation or SodaStream's position within it, but rather the view that shares may more closely track the broader market," Andersen wrote.
The analyst said that less certainty about potential sales and earnings growth may also limit the stock's ability to move higher.
Andersen still thinks there's room for SodaStream to add more U.S. households, but that the rate at which it gets into more retail locations is likely to slow. The analyst said that SodaStream already has its machines in some 15,000 U.S. retail locations, so moderated growth would not come as much of a surprise.
Shares of SodaStream gained $1.33 to $69.90 in afternoon trading.