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JP Morgan analyst downgrades SodaStream

NEW YORK (AP) -- Shares of SodaStream fell Wednesday after a J.P. Morgan analyst lowered his rating on the carbonation machine maker, noting that its stock is no longer cheap.

Although SodaStream will like continue to deliver better-than-expected earnings growth, analyst John Faucher said that its stock is already up 44 percent year to date. The S&P, by comparison, is up 17 percent. He lowered his rating to "neutral" from "overweight."

Its shares sank $1.34, or about 2.1 percent, to $63.49 in morning trading.

SodaStream International Inc. has grown rapidly since going public in 2010 but sales have slowed more recently. People like the Israeli-company's at-home carbonation systems because they help save money and reduce waste from plastic bottles and cans. The company has said there's plenty of room for growth in the U.S., given its relatively low penetration rates compared with some European countries.

Earlier this month, SodaStream said its first-quarter net income rose 20 percent, helped by higher U.S. demand, and beat Wall Street predictions. It also boosted its full-year growth predictions for adjusted earnings and revenue.