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Strong Growth Potential for Amer Sports Driven by Arc’teryx and Strategic Regional Expansion

In a report released today, John Kernan from TD Cowen maintained a Buy rating on Amer Sports, Inc., with a price target of $46.00.

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John Kernan has given his Buy rating due to a combination of factors that indicate strong growth potential for Amer Sports, Inc. The company’s brand Arc’teryx is experiencing premium-led growth, particularly in women’s products, footwear, and iconic items, which is expected to continue through FY30. This growth is supported by premium innovation focused on Mountain Performance rather than fashion trends, suggesting a sustainable competitive advantage.
Furthermore, Kernan notes that Amer Sports is targeting significant revenue growth across various regions, with North America and EMEA expected to see high-teens CAGR and China a low-double-digit CAGR. The company’s financial model projects a substantial increase in EPS and annual free cash flow by FY30, with a raised price target reflecting these expectations. The management team, largely new since 2020, is perceived as robust and capable, further supporting the positive outlook for the company’s future performance.

According to TipRanks, Kernan is a 5-star analyst with an average return of 9.5% and a 54.66% success rate. Kernan covers the Consumer Cyclical sector, focusing on stocks such as Ralph Lauren, Burlington Stores, and Dick’s Sporting Goods.

In another report released yesterday, Citi also maintained a Buy rating on the stock with a $50.00 price target.

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