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On Wednesday, TD Cowen expressed a positive outlook on Amer Sports Inc. (NYSE: AS), raising the price target on the company’s shares to $41.00 from the previous $30.00, while reiterating a Buy rating. The adjustment follows Amer Sports’ robust first-quarter sales and an anticipated strong product cycle in the second half of the year, particularly in footwear. The stock has shown remarkable momentum, gaining over 19% in the past week alone and currently trading at $38.17, near its 52-week high. According to InvestingPro analysis, the company’s current valuation appears stretched based on its Fair Value metrics.
The firm’s analyst highlighted the exceptional performance of Amer Sports’ Arc’teryx and Salomon brands, which contributed significantly to the company’s financial results. Amer Sports reported first-quarter sales of $1.473 billion, marking a 26% increase excluding foreign exchange impact, which is substantially higher than the high end of the company’s initial guidance. The Outdoor Performance segment saw the most notable growth, with an adjusted EBIT margin increase of 490 basis points. This surge was primarily driven by strong gross margin expansion, favorable product costs, and SG&A leverage.
Amer Sports’ earnings per share (EPS) for the first quarter came in at $0.27, nearly doubling the forecasted range of $0.14 to $0.15. Following these results, the company has revised its full-year 2025 EPS guidance upward to a range of $0.67 to $0.72, from the previous range of $0.64 to $0.69. However, this updated guidance still falls short of TD Cowen’s more optimistic estimate of $0.81, which is above the consensus estimate of $0.67.
TD Cowen anticipates Amer Sports will continue to outperform expectations, projecting a 33% compound annual growth rate in EPS through fiscal year 2028. The firm’s estimates are positioned above the high end of Amer Sports’ guidance, suggesting that the company’s conservative outlook on brand trends may be surpassed due to the strength of its upcoming product releases.
In summary, Amer Sports’ strong financial performance in the first quarter, coupled with positive revisions to future earnings guidance and the potential for continued brand momentum, has led TD Cowen to raise its price target for the company while maintaining a confident Buy rating. With a market capitalization of $20.72 billion and an overall Financial Health Score of GOOD from InvestingPro, the company has demonstrated remarkable strength, delivering an impressive 153% return over the past year. Investors seeking detailed valuation analysis and comprehensive research reports can find them exclusively on InvestingPro, along with expert insights for over 1,400 US stocks.
In other recent news, Amer Sports has reported strong first-quarter results, prompting several analysts to raise their price targets for the company. UBS analyst Jay Sole increased the price target to $50, maintaining a Buy rating, citing the company’s robust performance and growth potential in the Chinese market. Baird analyst Jonathan Komp also raised the price target to $44, highlighting the company’s revenue and adjusted EBITDA exceeding projections by 6% and 30%, respectively. Bernstein SocGen Group adjusted its price target to $43, noting a 23.5% year-over-year increase in revenue and an improved operating margin in the Outdoor Performance segment. Morgan Stanley (NYSE:MS), while lifting its price target to $33, maintained an Equalweight rating, acknowledging the company’s strong start to the year but expressing caution about the stock’s current valuation. Amer Sports has raised its full-year guidance, now anticipating revenue growth of 15-17% and earnings per share between $0.67 and $0.72. The company’s brands, including Salomon and Arc’teryx, have shown significant growth, with Salomon sneakers achieving $1 billion in annual sales. Despite potential tariff impacts, analysts remain optimistic about Amer Sports’ long-term growth prospects.
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