Bank of America just raised its EUR/USD forecast
Investing.com - Baird raised its price target on Amer Sports Inc. (NYSE:AS) to $45.00 from $44.00 on Wednesday, while maintaining an Outperform rating on the stock. The new target sits within the broader analyst range of $34-$50, according to InvestingPro data, with the stock currently trading at $35.74.
The price target increase follows Amer Sports’ second-quarter report, which included revenue and earnings per share results that exceeded expectations, with particularly strong performance from its Arc’teryx brand and Salomon footwear division.
The company reported a 29% increase in gross profit during the quarter and subsequently raised its outlook for 2025, despite plans for higher discretionary SG&A spending.
Baird noted management’s indication that Arc’teryx comparable sales could maintain growth at or above mid-teens percentages, with additional upside potential expected in the second half of the year.
The investment firm suggested that recent stock pullbacks may reflect temporary trading dynamics, particularly following a pre-IPO holder’s stock sale after the first quarter, and pointed to the upcoming September Vancouver Investor Day as an opportunity to improve visibility into growth potential for both Arc’teryx and Amer Sports.
In other recent news, Amer Sports reported robust second-quarter earnings that exceeded expectations, with an earnings per share (EPS) of $0.06, outperforming the anticipated loss of $0.02. The company also saw a 23% increase in revenue, reaching $1.24 billion. This strong performance was driven by notable growth in its Technical Apparel and Outdoor Performance segments, with revenues rising 23% and 35%, respectively. Salomon footwear, a key brand under Amer Sports, contributed significantly to this growth.
Additionally, Amer Sports has raised its full-year guidance, reflecting confidence in its ongoing business momentum. UBS has raised its price target for Amer Sports to $52 from $50, maintaining a Buy rating, citing growth opportunities for its Arc’teryx and Salomon brands. Despite these positive developments, the company’s stock saw a decline of 5% on Thursday. Nevertheless, investor interest remains high, as evidenced by a 1.77% increase in premarket trading following the earnings announcement.
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