Bank of America Securities analyst Lorraine Hutchinson reiterated a Buy rating on Amer Sports, Inc. (AS – Research Report) today and set a price target of $35.00.
Lorraine Hutchinson’s rating is based on Amer Sports, Inc.’s strong growth prospects and strategic positioning in the market. The company reported a higher-than-expected adjusted EPS for the fourth quarter, and management has provided guidance towards the upper end of its long-term growth algorithm. This includes a projected sales growth of 13-15% and an operating margin expansion of 40-90 basis points, indicating robust financial health and potential for future profitability.
Additionally, the Arc’teryx brand within Amer Sports is experiencing significant growth, particularly in the technical apparel segment, with notable increases in footwear and women’s products. The Ball & Racquet segment also showed a strong recovery, driven by positive trends in racquet sports and the success of new product launches. Furthermore, the company’s expansion in Greater China, a rapidly growing market, presents substantial opportunities for long-term growth. These factors collectively justify the Buy rating and the increased price objective.
Hutchinson covers the Consumer Cyclical sector, focusing on stocks such as Nike, Lululemon Athletica, and Signet Jewelers. According to TipRanks, Hutchinson has an average return of 5.9% and a 54.06% success rate on recommended stocks.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $34.00 price target.