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On Wednesday, Baird analyst Jonathan Komp increased the price target for Amer Sports Inc. (NYSE:AS) to $44.00, up from the previous target of $31.00, while keeping an Outperform rating on the company’s shares. The stock, currently trading at $37.37, has shown remarkable momentum with a 19.43% gain in the past week and is approaching its 52-week high of $37.99. The adjustment follows Amer Sports’ first-quarter earnings, which surpassed expectations, demonstrating significant strength across the company’s diverse portfolio. According to InvestingPro, the company has garnered a "GOOD" overall financial health rating.
Amer Sports’ first-quarter performance featured a revenue and adjusted EBITDA that exceeded analyst projections by 6% and 30%, respectively. The company’s direct-to-consumer (DTC) and China segments saw impressive growth, with increases of 39% and 43%. With total revenue reaching $5.46 billion and maintaining a healthy gross profit margin of 56.28%, Technical Apparel was particularly strong, with two-year DTC comparable sales growth exceeding 60%. Additionally, Salomon footwear experienced a 29% increase in the Outdoor Performance category, and Wilson Tennis 360 and apparel segments showed robust double-digit growth.
These results underscore Amer Sports’ key long-term growth drivers. In response to the positive earnings, the company has raised its full-year guidance, now anticipating revenue growth of 15-17% and earnings per share (EPS) in the range of $0.67 to $0.72, compared to the prior estimate of $0.64 to $0.69. The updated guidance suggests minimal impact from tariffs and indicates potential for significant upside in the second half of the year.
Komp’s report expressed confidence in Amer Sports’ ability to maintain a strong growth premium, with the expectation of continued upward adjustments to estimates. The new price target of $44 reflects this optimism and the potential for increased earnings in the latter half of 2025 and into 2026, with estimated EPS growth of 16% and 19% for those years, respectively. While trading at a relatively high P/E ratio of 82.58, InvestingPro analysis reveals 18 additional key insights about Amer Sports’ valuation and growth prospects. Discover comprehensive analysis and detailed metrics in the Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Amer Sports Inc. has reported a strong first quarter for 2025, with a 23.5% year-over-year revenue increase, prompting the company to raise its full-year guidance. This impressive performance has led to several analyst firms adjusting their price targets for the company. Bernstein SocGen Group increased its price target to $43, citing Amer Sports’ accelerated sales momentum and effective management of expenses. Morgan Stanley (NYSE:MS) also raised its target to $33, acknowledging the company’s robust growth and margin expansion potential, although it maintained an Equalweight rating. UBS set a higher price target at $50, emphasizing growth opportunities in the Arc’teryx brand and operations in China, while Evercore ISI adjusted its target to $43, highlighting the strength of the Technical Apparel division. Citi increased its price target to $42, noting the significant growth of the Arc’teryx and Salomon brands and the company’s strategic measures to mitigate tariff impacts. These developments reflect a positive outlook for Amer Sports as it navigates the fiscal year with a focus on growth and strategic initiatives.
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