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Investing.com -- Amer Sports (NYSE:AS) stock rose 1.7% in premarket trading after HSBC upgraded the company to Buy from Hold, citing a strong runway for sales growth with margin expansion driven by the group’s uniquely positioned portfolio.
The bank lifted its price target to $50 from $38 on higher estimates, with its EBIT forecasts for 2025-27 now 12% ahead of consensus.
HSBC noted that while Amer Sports’ equity story was previously dominated by the Arc’teryx brand and Greater China market, the company’s growth is becoming more balanced and global in nature.
According to HSBC, Amer Sports is well-positioned for its next growth chapter, supported by the global roll-out of Arc’teryx and Salomon brands.
The company is expanding retail presence across regions, with Arc’teryx planning to add 25 stores this year, mostly in North America, and a similar number next year with more regional balance.
Salomon is adding approximately 100 new stores in Greater China, along with 3-4 stores in the US and 5-10 in Europe, while Wilson continues its expansion in Greater China with 50 more Tennis 360 concept stores this year.
HSBC highlighted product diversification as a growth driver, with Arc’teryx expanding in footwear and women’s categories, Salomon growing in apparel and accessories, and Wilson developing soft goods.
The upcoming Investor Day on September 18 in Vancouver is expected to be a key positive catalyst, where management will likely provide long-term guidance for the entire portfolio and details on Arc’teryx’s global roll-out strategy.
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