Analyst Lorraine Hutchinson of Bank of America Securities reiterated a Buy rating on Amer Sports, Inc., retaining the price target of $46.00.
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Lorraine Hutchinson’s rating is based on Amer Sports, Inc.’s strong financial performance and promising growth prospects. The company reported a significant earnings beat in the third quarter, with an EPS of $0.33, surpassing consensus estimates. This was driven by robust sales and improved margins across various segments, particularly in direct-to-consumer channels, which saw a 51% increase in revenue.
Additionally, the rebound in sales growth in China, especially for the Arc’teryx brand, has alleviated concerns about potential negative brand impacts from earlier controversies. The company’s strategic expansion in China and North America, along with the strong performance of Salomon footwear, further supports the positive outlook. With an increased revenue forecast and a solid plan for future growth, Hutchinson maintains a Buy rating, reflecting confidence in Amer Sports’ ability to achieve continued market share gains and best-in-class growth.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $46.00 price target.