Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Monday, TD Cowen demonstrated confidence in Amer Sports Inc. (NYSE:AS) by raising its price target from $30.00 to $37.00 while maintaining a Buy rating on the company’s shares. The move comes as the stock has shown remarkable momentum, delivering a 50.65% return over the past six months. The firm’s analyst cited strong performance and growth prospects for Amer Sports’ brands, Arc’teryx and Salomon, as key reasons for the adjustment. According to InvestingPro data, analyst targets for the $17.27 billion market cap company now range from $21 to $40.
The analyst’s report highlighted that both Arc’teryx and Salomon have been outperforming their peers, driven by new product innovation and direct-to-consumer (DTC) engagement. This success is reflected in the company’s robust 17.79% revenue growth over the last twelve months. Despite the potential disruptions from tariffs, Amer Sports is seen to have a more diversified sourcing exposure than its competitors, as well as significant pricing power. InvestingPro analysis reveals 15+ additional insights about the company’s performance and potential, available to subscribers.
The report also pointed out that the strategic shift towards a greater emphasis on Arc’teryx’s DTC channel and the anticipated growth of Salomon’s softgoods segment are expected to contribute to a robust 28% five-year earnings per share (EPS) compound annual growth rate (CAGR) through the fiscal year 2029.
Amer Sports’ financial outlook for FY25 includes sales growth of 13%-15%, a gross margin increase to 56.5%-57.0% (up 135 basis points year-over-year at the midpoint), and EPS growth ranging between 36% and 47%. The analysis suggests that while tariffs might pressure the high-end of the gross margin and EBIT margin guidance of 11.5%-12.0% slightly lower, the overall multi-year EPS growth trajectory for Amer Sports remains solid.
In other recent news, Amer Sports reported its fourth-quarter 2024 earnings, revealing an adjusted diluted earnings per share (EPS) of $0.17, which missed the forecasted $0.34. The company achieved a revenue of $1.6 billion for the quarter and $5.2 billion for the full year, marking an 18% increase year-over-year. Despite the earnings miss, BofA Securities analyst Lorraine Hutchinson raised the firm’s stock target for Amer Sports to $35, maintaining a Buy rating, citing the strong performance of the Arc’teryx brand as a key growth driver. Amer Sports has projected sales growth between 13-15% for fiscal year 2025, with expectations of an adjusted gross margin of 56.5-57% and an adjusted operating profit margin of 11.5-12%. The company plans to open 25-30 new stores in 2025, with strong sales growth anticipated in Greater China and the Asia Pacific region. Additionally, Amer Sports has significantly reduced its net debt from $2 billion to $600 million, achieving a net debt to adjusted EBITDA ratio of 0.7x. The company anticipates an adjusted diluted EPS between $0.64 and $0.69 for 2025, with technical apparel and outdoor performance expected to be key growth areas.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.