Strauss Group Ltd. (STRS) headed for a record high after Citigroup Inc. (C:US) started coverage of the Israeli food and beverage maker with a buy rating on bets sales of its coffee and salads will grow.
Strauss advanced 3.2 percent to 63.65 shekels at 12:57 p.m. in Tel Aviv, set for the highest level since Bloomberg began tracking the data. Shares of the Petach Tikvah, Israel-based company have gained 30 percent this year. The benchmark TA-25 Index was little changed today.
The company’s leading position in the emerging-market coffee business and its fast-growing dips and salad product line in the U.S. and Canada are “a potent blend,” Citigroup analyst Michael Klahr said today in an e-mailed note. “We think the stock can re-rate further as both businesses continue to grow and increase their share of earnings before interest and taxes from 57 percent currently.”
Marches that drew thousands of protesters into the streets of Tel Aviv in 2011 led the company to cut the prices on some of its products and to target overseas markets, including Latin America and Europe. Strauss sells hummus dips and spreads in Mexico through a $10 million venture with PepsiCo Inc. (PEP:US)
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