Proactive Investors - Amer Sports Inc (NYSE:AS) has received a score of positive reviews from analysts after floating on the New York Stock Exchange last month.
Initiating coverage on Monday, Bank of America (NYSE:BAC) (BoA), UBS and Goldman Sachs (NYSE:GS) analysts were among those to grant the Helsinki-based outdoor apparel brand owner ‘Buy’ ratings.
According to BoA and UBS, the potential of Amer’s Arc'teryx brand and its exposure to China bodes well for the company.
“We think the brand has strong momentum in the technical outdoor luxury category,” BoA analysts said, forecasting sales to grow at a 19% two-year compound annual growth rate.
China’s premium sportswear industry is also expected to grow faster than the apparel sector, according to the bank's analysts, likely aiding growth for Amer domestically.
UBS also highlighted such “meaningful, but underappreciated, growth potential in China”, adding that it expected the brand to surprise the market with future earnings.
Revenue growth should sit at 14% over the near to medium-term, UBS forecast, with per-share earnings seeing a 27% four-year compound annual growth rate.
BoA set a share price target of US$18 for Amer, up 15% on Monday’s close.
UBS sees shares climbing even higher to US$23, which would mark a rise of just under 50%.
Amer Sports listed on the New York Stock Exchange through an initial public offering last month, with US$1.37 billion raised as shares were priced at US$13 each.