Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - UBS has reiterated its Buy rating and $50.00 price target on Amer Sports Inc. (NYSE:AS), which has delivered an impressive 224% return over the past year, ahead of the company’s upcoming earnings report on August 19. According to InvestingPro data, analysts maintain a strong Buy consensus on the $20.6 billion sportswear company.
UBS analysis indicates that Amer’s key brands, Arc’teryx and Salomon, have maintained robust sales momentum, leading the firm to forecast a "beat & raise report" that should align with market expectations.
The firm noted potential risk that earnings expectations might be higher than anticipated, citing evidence from the broader Softlines second-quarter earnings season where performance bars have been "very high and often higher than expected."
UBS sees a balanced upside/downside outlook for Amer Sports shares around the earnings event, despite these concerns about elevated expectations.
The options market is pricing in a potential 10.0% share price move following the earnings report, which exceeds the historical average movement of 8.4%, though UBS expects less volatility than the options market suggests.
In other recent news, Amer Sports has been the focus of several analyst updates and company announcements. TD Cowen has raised its price target for Amer Sports to $43 from $41, maintaining a Buy rating, and noted the company’s significant market capitalization of $20 billion. Piper Sandler initiated coverage with an overweight rating and a $45 price target, highlighting the strong performance across Amer Sports’ key segments, including Technical Apparel, Outdoor Performance, and Ball (NYSE:BALL) & Racquet. TD Cowen also reaffirmed its Buy rating, citing confidence in the company’s growth trajectory, as expressed by CFO Andrew Page, who emphasized the durability of Amer Sports’ growth. Bernstein maintained an Outperform rating with a $43 target, praising the company’s multi-brand, multi-channel strategy and international growth aspirations. In a recent development, Amer Sports announced a secondary offering of 35 million shares by FountainVest Partners, though the company itself will not sell shares or receive proceeds. The offering is managed by Goldman Sachs and BofA Securities, and its completion is subject to market conditions.
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