On Wednesday, TD Cowen exhibited confidence in Amer Sports Inc. (NYSE: AS), raising the stock's price target from $21.00 to $23.00 while maintaining a Buy rating. The firm's decision follows Amer Sports' strong third-quarter performance and the company's optimistic forecast for fiscal year 2025. Amer Sports' management has projected low double-digit to mid-teen revenue growth for FY25, a rate that is expected to surpass that of most of its industry peers.
The positive adjustment in Amer Sports' outlook is attributed to its impressive Q3 results, which were bolstered by solid sales in China and the global success of its Technical Apparel and Arc'teryx brands. The company's Q3 achievements have laid a strong foundation for future growth, as noted by the firm.
Looking ahead to the fourth quarter, TD Cowen suggests that Amer Sports' revenue guidance for its Technical Apparel division may be understated, potentially allowing for upward revisions to future estimates as the company progresses toward FY25. This conservative forecast, according to the firm, could lead to adjustments in expectations, leaving room for positive surprises.
The firm's commentary indicates that Amer Sports has managed to navigate the market effectively, particularly in its Technical Apparel segment, which includes the high-end outdoor brand Arc'teryx. The company's performance in this category has been a key driver of its recent success and is expected to continue contributing to its growth trajectory.
As Amer Sports moves toward its FY25 goals, the market will be watching closely to see if the company can maintain its momentum and achieve the ambitious revenue growth targets set by its management. With the stock price target now set higher by TD Cowen, investors may have a keen eye on the company's future financial reports and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.