On Wednesday, Deutsche Bank (ETR:DBKGn) demonstrated confidence in Amer Sports Inc. (NYSE:AS) by raising its price target to $23.00, up from the previous $22.00, while reiterating a Buy rating on the stock. The adjustment comes ahead of the company's third-quarter earnings report, scheduled for November 19.
Amer Sports has experienced a notable increase in its stock value, outperforming the S&P 500 with a 79.6% gain over the past three months compared to the broader market's 10.5% rise. The analyst from Deutsche Bank anticipates Amer Sports will not only meet but exceed expectations for another quarter, prompting an upward revision of the full-year earnings per share (EPS) guidance.
The optimism is fueled by stronger-than-expected sales from the company's Arc'teryx brand and growing momentum in the Chinese market, where both Arc'teryx and Salomon are gaining traction. Despite economic challenges in China, Amer Sports has managed to capture approximately 20% of its FY23 sales from the region, showcasing resilience in consumer spending.
The analyst expects Amer Sports to potentially raise its full-year EPS guidance range to $0.42-0.46, an increase from the current forecast of $0.40-0.44. This projection is based on the company's solid performance and strategic growth initiatives that are anticipated to drive further value for investors.
In summary, Deutsche Bank's updated price target reflects a belief in Amer Sports' ability to continue its strong performance, particularly through its success in the Chinese market and its popular Arc'teryx brand. The company's forthcoming earnings report will provide further insight into its financial health and growth trajectory.
InvestingPro Insights
Recent data from InvestingPro aligns with Deutsche Bank's optimistic outlook on Amer Sports Inc. (NYSE:AS). The company's stock has shown significant momentum, with InvestingPro reporting a strong 79.26% return over the last three months, closely matching the 79.6% gain mentioned in the article. This performance is further complemented by a 33.85% return over the past six months, indicating sustained investor confidence.
InvestingPro Tips highlight that Amer Sports operates with a moderate level of debt and has liquid assets exceeding short-term obligations, suggesting a solid financial foundation. This stability could support the company's expansion efforts in China and the growth of its Arc'teryx brand, as discussed in the article.
While the company was not profitable over the last twelve months, analysts predict profitability this year, according to InvestingPro. This aligns with Deutsche Bank's expectation of Amer Sports potentially raising its full-year EPS guidance.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Amer Sports, providing a deeper understanding of the company's financial position and market performance.
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