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On Wednesday, Morgan Stanley (NYSE:MS) adjusted its outlook on Amer Sports Inc. (NYSE:AS) by raising the price target from $28.00 to $33.00, while keeping an Equalweight rating on the company’s shares. The decision followed Amer Sports’ robust performance in the first quarter and an upward revision of its full-year guidance. The stock has shown remarkable momentum, gaining 19.43% in the past week and trading near its 52-week high of $37.99. According to InvestingPro analysis, the company appears overvalued at current levels, with a P/E ratio of 82.58.
The firm acknowledged Amer Sports’ strong start to the year, highlighting several key strengths of the company. According to Morgan Stanley, Amer Sports demonstrated impressive growth and margin expansion potential, supported by robust revenue growth of 21.38% over the last twelve months. Additionally, the company benefits from minimal tariff risk and is anticipated to see potential earnings per share (EPS) upside in 2025. With a market capitalization of $20.72 billion and a healthy current ratio of 1.66, InvestingPro data reveals 18 additional key insights about the company’s financial health and growth prospects.
Despite the positive aspects, Morgan Stanley’s stance remains cautious, reflected in the maintained Equalweight rating. The analyst believes that the market has already accounted for the company’s growth prospects and potential earnings benefits in the current stock price.
Amer Sports’ recent financial results have evidently met with approval from the market, as the raised price target suggests confidence in the company’s continued performance. The updated guidance for the year ahead has reinforced this outlook, indicating that Amer Sports is well-positioned for future growth.
Investors will likely monitor Amer Sports’ progress closely, especially in light of the company’s potential to outperform expectations in the coming years. The raised price target from Morgan Stanley offers a new benchmark for evaluating the company’s stock performance moving forward.
In other recent news, Amer Sports reported strong first-quarter results, with adjusted earnings per share of $0.27, surpassing analyst expectations of $0.19. Revenue for the quarter reached $1.47 billion, contributing to a surge in investor optimism. Following these results, UBS analyst Jay Sole raised the company’s price target to $50 while maintaining a Buy rating, citing the potential for further growth driven by brands like Arc’teryx and Salomon. Evercore ISI also increased its price target to $43, emphasizing the growth in Amer Sports’ Technical Apparel division, particularly through Direct-to-Consumer sales and wholesale operations. Citi analysts echoed this positive sentiment, raising their price target to $42 and highlighting the company’s strategic initiatives to mitigate tariff impacts and drive double-digit earnings growth. Despite challenges, the company’s proactive strategies and brand popularity are expected to support continued financial stability. These developments underscore Amer Sports’ strong performance and growth potential in the retail sector.
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