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Investing.com - TD Cowen has raised its price target on Amer Sports Inc. (NYSE:AS) to $43.00 from $41.00 while maintaining a Buy rating on the stock. The company’s stock is currently trading at $38.48, near its 52-week high of $40.21, after delivering an impressive 230.88% return over the past year. According to InvestingPro analysis, the stock is currently trading above its Fair Value.
The firm noted that Amer Sports has achieved a $20 billion market capitalization, which it describes as a relative "cap" size in Softlines that requires long-term investors focused on investing beyond small and mid-cap into larger capitalization companies.
TD Cowen believes Amer Sports has the components to make the jump to a higher market capitalization tier, citing several factors supporting this view.
Among these factors, the firm highlighted the durability of high-quality and premium innovation-led sales growth, as well as what it considers best-in-class management at the company.
The research firm also stated that consensus estimates for Amer Sports appear too low for fiscal years 2025 and 2026, suggesting potential upside to current market expectations.
In other recent news, Amer Sports Inc. reported robust first-quarter sales of $1.473 billion, marking a 26% increase when excluding foreign exchange impacts. This performance exceeded the company’s initial guidance, with the Outdoor Performance segment showing significant growth and a notable adjusted EBIT margin increase of 490 basis points. The company also adjusted its full-year 2025 earnings per share (EPS) guidance upward to a range of $0.67 to $0.72, though this remains below TD Cowen’s more optimistic projection of $0.81. TD Cowen subsequently raised its price target for Amer Sports to $41.00, maintaining a Buy rating, citing strong brand momentum and a promising product cycle.
Additionally, Amer Sports announced a secondary offering of 35 million shares, managed by Goldman Sachs & Co. LLC and BofA Securities. The company will not be selling any shares or receiving proceeds from this offering. Piper Sandler initiated coverage on Amer Sports with an overweight rating and a $45.00 price target, emphasizing the company’s unique portfolio and consistent sales growth. The firm highlighted the strong performance of the Salomon and Wilson brands as key drivers of recent acceleration.
Bernstein maintained an Outperform rating with a $43.00 price target, underscoring the company’s effective multi-brand and multi-channel growth strategy. The firm pointed to successful retail strategies in China and the expansion of Salomon and Arc’teryx as factors for potential growth. These developments reflect a positive outlook for Amer Sports, as analysts express confidence in the company’s global expansion and strategic initiatives.
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