Truist Securities initiates coverage on Amer Sports stock with Buy rating

Investing.com - Truist Securities initiated coverage on Amer Sports Inc. (NYSE:AS) with a Buy rating and a $42.00 price target on Monday. The target represents significant upside potential, with analyst targets ranging from $40 to $58, according to InvestingPro data.

The research firm highlighted Amer Sports’ portfolio of brands including Arc’teryx, Salomon, and Wilson, noting their specialized focus areas and limited U.S. awareness as potential growth drivers.

Truist Securities pointed to the company’s leverage to higher-income consumers as another factor that could fuel continued growth for the sportswear and equipment manufacturer.

The firm believes Amer Sports is well-positioned to outperform in a tariff-pressured industry due to its higher price points and geographic concentration outside the United States.

Truist Securities also noted that as Amer Sports executes on growth initiatives, mix shifts and scale could provide substantial margin expansion opportunities alongside robust topline growth.

In other recent news, Amer Sports has seen a flurry of activity with several analyst firms providing updates on their stock ratings and price targets. UBS reiterated its Buy rating on Amer Sports, maintaining a price target of $52, citing strong growth potential and a positive Q3 guidance as factors that could enhance investor sentiment. TD Cowen also raised its price target for Amer Sports to $46, attributing the increase to growth opportunities in the Arc’teryx brand, particularly in women’s apparel and footwear. Wells Fargo continues to hold an Overweight rating on the company, with a price target of $40, reflecting a positive outlook.

Meanwhile, Amer Sports faced challenges as Chinese authorities launched an investigation into a fireworks display in Tibet sponsored by Arc’teryx, leading to an 8.4% drop in the company’s shares. The event raised environmental concerns on Chinese social media platforms. Despite this setback, analysts remain optimistic about the company’s long-term growth prospects. UBS highlighted Amer as one of the best growth stocks in Softlines, expecting it to outperform due to stronger-than-expected growth. These recent developments suggest a complex landscape for investors to navigate.

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