Lisa Cook sues Trump over firing attempt, emergency hearing set
Investing.com - HSBC upgraded Amer Sports Inc. (NYSE:AS), the $21.5 billion market cap sports equipment company with impressive 21.9% revenue growth, from Hold to Buy and raised its price target to $50.00 from $38.00 on Wednesday. According to InvestingPro analysis, the stock appears to be trading near its Fair Value.
The upgrade comes after HSBC had previously downgraded the stock late last year, with the firm now acknowledging it had "underestimated the growth compounding nature" of Amer Sports’ portfolio.
While Amer Sports’ equity story was previously driven primarily by the Arc’teryx brand and the Greater China market, HSBC notes that the company’s success formula is expanding to other portfolio segments and Asian markets.
HSBC specifically highlighted Salomon soft goods, which has shown strong sequential acceleration after delivering a low-double digit sales CAGR over the past three years in the Outdoor Performance segment, adding "a second leg of growth to the equity story."
In Asia excluding Greater China, both Arc’teryx and Salomon brands "continue to make great strides," with the region growing the fastest and contributing one-fifth to the group’s sales growth in the first half of the year, according to HSBC.
In other recent news, Amer Sports reported strong second-quarter results, with earnings per share reaching $0.06, surpassing analyst expectations of a $0.02 loss. The company’s revenue increased by 23% to $1.24 billion, with notable performances in its Technical Apparel and Outdoor Performance segments. Amer Sports also raised its full-year guidance, indicating improved future prospects. UBS reiterated its Buy rating on Amer Sports, maintaining a $52 price target, emphasizing the growth potential of its Arc’teryx and Salomon brands. TD Cowen raised its price target for Amer Sports to $44, highlighting the company’s increased full-year guidance despite some noise in the quarterly results. Baird also increased its price target to $45, citing strong growth in the Arc’teryx brand and Salomon footwear division. UBS further raised its price target from $50 to $52, underscoring the strong growth opportunities for Amer’s key brands. These developments reflect a positive outlook from analysts on Amer Sports’ growth trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.