On Monday, Bernstein initiated coverage on Amer Sports Inc. (NYSE:AS) with an Outperform rating and a price target of $18.50. The firm highlighted the company's potential for significant growth in the global outdoor sportswear market, underpinned by strong compound annual growth rates (CAGR) forecasted for China, the USA, and the European Union (EU).
According to the analysis, Amer Sports is expected to see a CAGR of 26% in China, 11% in the USA, and 8% in the EU from 2023 to 2028. The company is projected to capture market shares of 7% in China, 3% in the USA, and 1% in the EU in the outdoor segment, leveraging strategic execution and brand strength.
In China, Amer Sports has established a significant presence as a leading player in both outdoor technical apparel and the trending "gorpcore" fashion style. For the Americas and EMEA (Europe, the Middle East, and Africa) regions, growth is anticipated to be driven by category expansion and retail development. Overall, Amer Sports is expected to achieve a 14% CAGR from 2023 to 2028.
Bernstein's proprietary analysis suggests that the global outdoor sportswear market maintains a consistent market structure across regions. There is strong demand for in-market and premium segments across China, the U.S., and the EU. This demand, coupled with relative market concentration, supports the growth of Amer Sports' brands.
Finally, the report emphasizes sustained consumer demand for outdoor lifestyles, especially in the post-COVID era. The forecast indicates a CAGR of 18% in China, 4% in the USA, and 3% in the EU markets, reflecting the ongoing interest in outdoor activities and sportswear.
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