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Investing.com - TD Cowen has raised its price target on Amer Sports Inc. (NYSE:AS) to $44.00 from $43.00 while maintaining a Buy rating on the stock. The company, which has seen its stock surge over 160% in the past year, currently trades at a P/E ratio of 98.3x.
The firm noted some noise in the company’s second-quarter results but highlighted that Amer Sports increased its full-year guidance, suggesting consensus estimates may be too low. According to InvestingPro data, 6 analysts have recently revised their earnings estimates upward, with the company expected to maintain its strong revenue growth of 21.7% seen in the last twelve months.
Management raised its revenue outlook for Technical Apparel and Outdoor Performance segments, projecting high-teens percentage growth excluding foreign exchange effects in the second half of the year, compared to mid-20s percentage growth in the first half.
TD Cowen views this second-half projection as conservative and identifies omni-channel comparable sales and accelerating Americas wholesale business as potential upside drivers for the company.
The firm also sees conservatism in both revenue and gross margin guidance given expected mix shifts toward direct-to-consumer channels, with its earnings per share estimates approximately 20% above consensus for fiscal year 2026.
In other recent news, Amer Sports Inc. reported impressive second-quarter results, surpassing earnings expectations with an earnings per share of $0.06, compared to an anticipated loss of $0.02. Revenue for the quarter increased by 23% to $1.24 billion, driven by strong performances in the Technical Apparel and Outdoor Performance segments, with the latter seeing a 35% surge. The company also raised its full-year guidance, reflecting continued confidence in its growth trajectory. Following these results, Baird increased its price target for Amer Sports to $45, maintaining an Outperform rating, while UBS raised its target to $52, citing growth opportunities for the Arc’teryx and Salomon brands. Despite these positive developments, Amer Sports’ stock experienced a decline, although it gained 1.77% in premarket trading after the earnings call. The company’s Ball (NYSE:BALL) & Racquet Sports segment also showed growth, with an 11% increase in revenue to $314 million. Both Baird and UBS’s positive outlooks underscore the strong market position of Amer Sports’ leading brands. These developments highlight the company’s robust performance and potential for future growth.
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