In a report released today, Paul Lejuez from Citi maintained a Buy rating on Amer Sports, Inc. (AS – Research Report), with a price target of $36.00.
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Paul Lejuez’s rating is based on the anticipation of strong fourth-quarter sales and margin performance, particularly driven by the growth of Arc’teryx, a key brand under Amer Sports. The company is expected to surpass consensus estimates for tech apparel sales, and management has highlighted significant demand across various geographies and categories. Despite facing foreign exchange challenges, management is likely to reaffirm its guidance for fiscal year 2025, projecting low double-digit to mid-teen sales growth with improved EBIT margins.
Lejuez also notes the positive momentum in the Chinese market, which appears to counterbalance broader economic challenges in the region. Although the market has set high expectations and the stock has significantly outperformed recently, the fourth quarter earnings are not expected to serve as a major catalyst. Nevertheless, the overall outlook remains optimistic, with expectations of sustained growth and a target price that suggests a favorable return, supporting the Buy rating for Amer Sports.
In another report released on February 13, Bernstein also initiated coverage with a Buy rating on the stock with a $38.00 price target.