UBS Raises Amer Sports Price Target Following Q3 Report

UBS analysts increased their price target for Amer Sports (NYSE:AS) from $24 to $27, maintaining a Buy rating, citing robust growth prospects for the company’s Arc’teryx brand and its expanding presence in China. Amer’s third-quarter performance bolstered confidence, with the company raising its fiscal year 2024 sales, gross margin, and EPS guidance.

While the stock climbed nearly 6% yesterday following the earnings report, UBS sees additional upside potential. The market remains cautious about Amer’s exposure to China’s challenging consumer environment, but the analysts emphasized that the company’s strong fundamentals position it well for sustained growth.

UBS projected a 32% compound annual growth rate (CAGR) for Amer’s EPS over four years, justifying a 27x P/E multiple. The analysts also anticipated positive EPS surprises in the coming quarters, which could act as catalysts to drive the stock closer to the revised $27 price target.