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Amer Sports rises as brokerages start coverage with focus on China demand

Published February 26, 2024

By Ananya Mariam Rajesh

Feb 26 (Reuters) - Amer Sports (AS.N), shares rose as much as 3.5% on Monday as analysts initiated coverage with largely bullish ratings and highlighted strong demand for the Wilson tennis racket maker's premium outdoor and sportswear products in China.

The company returned to public markets on Feb. 1 after selling shares at a discounted price in its U.S. IPO for a valuation of $6.3 billion. China's Anta Sports (2020.HK), bought the company in 2019.

 

At least 10 brokerages, including TD Cowen and Bernstein, on Monday rated the stock "outperform" and UBS assigned the highest price target of $23.

The shares were trading at $16, giving the company a market value of $8 billion, in early trading on Monday, compared with the IPO price of $13.

"I think Arc'teryx and Salomon are being well received by the market in China. Both brands have been catering to the region with unique in-store experiences, products and campaigns," Jane Hali & Associates senior analyst Jessica Ramirez said.

Analysts also expect Amer Sports to improve its performance in the U.S., helped by customers upgrading sports equipment and from Salomon's innovative running shoes that have gained market share from Nike (NKE.N), and Adidas (ADSGn.DE).

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