On Friday, Evercore ISI updated its outlook on Amer Sports Inc. (NYSE:AS), increasing the price target to $25.00 from the previous $21.00 while reaffirming an Outperform rating on the stock. The adjustment comes in response to Amer Sports' significant stock price increase of approximately 76% since the last evaluation.
In a recent statement, the firm acknowledged ongoing concerns such as the influence of Chinese ownership during a U.S. election year, general aversion to portfolio companies, and the complexity of financial presentations. Despite these issues, the firm's focus remains on the global macroeconomic environment and specific risks like tariffs that could impact the industry.
Evercore ISI highlighted the performance of Amer Sports' leading brands, Arcteryx and Salomon, which are reportedly excelling within their respective categories as the winter season approaches. This strong brand performance is expected to drive consensus estimates upward in the near term.
The firm's stance on Amer Sports remains positive, with the expectation that the company's top brands will continue to outperform, contributing to a favorable outlook for the stock. The newly set price target of $25 reflects this optimism and the anticipated upward movement in Amer Sports' financial metrics.
In other recent news, Amer Sports has seen a series of positive developments. Deutsche Bank (ETR:DBKGn) raised the company's price target to $23 due to strong sales from its Arc'teryx brand and growing momentum in the Chinese market. Amer Sports also reported a significant 60% revenue increase during the Golden Week period in Greater China, largely attributed to the successful performance of its brands Salomon, Wilson, and Arc'teryx.
TD Cowen increased Amer Sports' price target to $21, citing management's strong execution and growth prospects. The company's second-quarter results exceeded expectations, with a significant revenue beat and an adjusted EBITDA surpassing forecasts. Amer Sports raised its full-year guidance, now anticipating revenue growth of 15-17%.
However, Wells Fargo (NYSE:WFC) downgraded the company's stock to Equal Weight, despite acknowledging the company's strong performance. Baird maintained an Outperform rating on Amer Sports, highlighting the company's robust momentum. These recent developments underscore Amer Sports' ability to maintain growth and profitability in a challenging consumer environment.
InvestingPro Insights
Recent data from InvestingPro adds depth to Evercore ISI's bullish outlook on Amer Sports Inc. (NYSE:AS). The company's market cap stands at $10.06 billion, reflecting its significant presence in the sports equipment industry. Amer Sports has shown impressive revenue growth, with a 17.32% increase over the last twelve months as of Q2 2024, reaching $4.638 billion. This aligns with Evercore's positive view on the company's leading brands, Arcteryx and Salomon.
InvestingPro Tips highlight that Amer Sports operates with a moderate level of debt and has liquid assets exceeding short-term obligations, suggesting financial stability. Additionally, analysts predict the company will be profitable this year, supporting Evercore's expectation of upward-moving consensus estimates.
The stock's strong performance is evident in its 70.84% price return over the last three months, trading near its 52-week high at 96.32% of that level. This momentum correlates with Evercore's significant price target increase and reaffirmed Outperform rating.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for Amer Sports, providing a deeper understanding of the company's financial health and market position.
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