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On Wednesday, Bernstein SocGen Group updated its view on Amer Sports Inc. (NYSE: AS) by increasing the price target to $43.00 from the previous $32.00, while maintaining an Outperform rating on the stock. The company, currently valued at $20.72 billion, has seen its stock surge 19.43% in the past week, trading near its 52-week high of $37.99. According to InvestingPro analysis, the stock appears overvalued at current levels, trading at a P/E ratio of 82.58. The adjustment follows Amer Sports’ announcement of strong first-quarter results for 2025, which saw a 23.5% year-over-year increase in revenue. This performance led the company to raise its full-year 2025 guidance, citing accelerated sales momentum and effective management of selling, general, and administrative expenses (SG&A).
According to the analyst’s remarks, Amer Sports exceeded expectations in all business segments and geographic regions. Notably, the Outdoor Performance segment’s adjusted operating margin reached 14.7%, which was a substantial gain from the high single-digit margins of 2024. The company maintains strong operational efficiency with a gross profit margin of 56.28% and has received a "GOOD" overall financial health rating from InvestingPro, which offers 20 additional exclusive insights about the company’s performance. These figures surpassed consensus estimates by 75% and the firm’s own estimates by 110%.
The company has increased its full-year 2025 adjusted earnings per share (EPS) guidance to between $0.67 and $0.72, marking a 4.5% rise from prior forecasts. This boost is attributed to the accelerated top-line growth and a slightly improved tax rate. Despite the positive revision, management has conservatively adjusted the performance expectations for the remainder of 2025, indicating a strategy of continued "beat and raise" in future quarters.
Management also addressed the potential impact of tariffs, noting that a return to higher tariff levels on goods from China could affect margins by around 100 basis points, equating to a $0.05 drag on adjusted EPS. With a healthy current ratio of 1.66 and revenue growth of 21.38% over the last twelve months, the company appears well-positioned to navigate these challenges. For deeper insights into Amer Sports’ financial strength and growth potential, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which provides detailed analysis of 1,400+ top US stocks. Furthermore, the Salomon brand has emerged as a significant growth driver for Amer Sports, alongside the already thriving Arc’teryx brand. Salomon’s performance has been fueled by expansion in soft goods, growth in the Asia-Pacific and China regions, and a notable increase in margins.
The analyst highlighted that Salomon’s sneakers have achieved $1 billion in annual sales, with management pointing to substantial growth opportunities ahead. In light of these developments, Bernstein SocGen Group has updated its model and revised estimates to align with the company’s raised yet conservative guidance. The new price target reflects a valuation of 43 times the next twelve months plus one (NTM+1) earnings.
In other recent news, Amer Sports reported impressive first-quarter results, with adjusted earnings per share of $0.27, surpassing the analyst consensus estimate of $0.19. The company’s revenue for the quarter reached $1.47 billion, reflecting strong performance across its brand portfolio. Following these results, several analyst firms revised their price targets for Amer Sports. UBS raised its price target to $50, maintaining a Buy rating, citing growth opportunities in the Arc’teryx brand and Chinese market operations. Evercore ISI increased its target to $43, highlighting the strength in Amer Sports’ Technical Apparel division, particularly in Direct-to-Consumer sales. Citi also lifted its price target to $42, emphasizing robust growth in the Arc’teryx and Salomon brands and a gross margin expansion of 330 basis points. Morgan Stanley (NYSE:MS) adjusted its price target to $33, noting Amer Sports’ strong start to the year but maintaining an Equalweight rating due to market expectations already reflecting the company’s growth potential. These developments underscore the positive outlook analysts have on Amer Sports’ financial trajectory.
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