Citi analyst Paul Lejuez has maintained their bullish stance on AS stock, giving a Buy rating today.
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Paul Lejuez has given his Buy rating due to a combination of factors including strong growth momentum and positive future projections for Amer Sports, Inc. The company reported a robust second quarter, with Salomon’s growth accelerating by 35% and a significant improvement in gross margins. Despite some challenges like tariff headwinds and a timing shift in Arc’teryx sales, management remains optimistic about the continued growth trajectory in the second half of the year.
Lejuez highlights the potential for further sales and margin improvements, particularly if current trends persist. The acceleration in Salomon’s footwear growth across regions and the double-digit growth at both Arc’teryx and Salomon are expected to drive margin expansion. Additionally, the potential for debt reduction and lower taxes could contribute to a strong double-digit EPS growth over the next few years. These factors, combined with a favorable risk/reward profile, justify a premium valuation for Amer Sports, Inc., supporting the Buy rating.
Lejuez covers the Consumer Cyclical sector, focusing on stocks such as Deckers Outdoor, Gap Inc, and Abercrombie Fitch. According to TipRanks, Lejuez has an average return of 9.8% and a 57.41% success rate on recommended stocks.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $44.00 price target.