Is AS a good stock to buy? We came across a bullish thesis on Amer Sports, Inc. on The Consumer Ascent’s Substack. In this article, we will summarize the bulls’ thesis on AS. Amer Sports, Inc.’s share was trading at $33.66 as of March 17th. AS’s trailing and forward P/E were 44.14 and 28.90 respectively according to Yahoo Finance.
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Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe and internationally. AS presents a compelling growth narrative driven primarily by the resurgence of its Salomon brand, a 75-year-old French Alps heritage company that has evolved from ski equipment into a leading player in trail running, hiking, and increasingly lifestyle footwear. At the center of this transformation is the Sportstyle segment, which has scaled rapidly from a niche base and is now tracking ahead of early-stage growth seen at peers like Hoka and On.
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Built on the XT platform, particularly the XT-6, Sportstyle benefits from authentic performance credibility, distinctive design, and organic adoption through fashion channels, allowing it to expand quickly while maintaining brand integrity. Even under conservative assumptions, Sportstyle could approach $2.5 billion in revenue by 2030, positioning it as a major long-term growth driver.
Importantly, growth is no longer singular. While Sportstyle has led momentum, Salomon’s core Performance footwear business has reaccelerated, with strong traction from new product launches like Aero Glide 3 and the GRVL franchise, alongside improving demand across North America, EMEA, and China. This dual-engine growth dynamic meaningfully expands Salomon’s addressable market beyond its traditional niche. Continued product diversification, increasing global awareness, and strategic retail expansion—particularly in the U.S.—further support sustained momentum.
From a financial perspective, Salomon is poised to become a primary earnings driver within Amer Sports, contributing significantly to incremental EBIT growth alongside Arc’teryx. While valuation already reflects optimism, trading at ~16.5x 2026 EBIT, there remains potential upside through multiple expansion and execution. With a 12-month target implying ~30–40% upside, the opportunity appears attractive, albeit better suited as a measured position. Ultimately, the key determinant will be Salomon’s ability to sustain demand, broaden distribution, and evolve Sportstyle into a durable, multi-billion-dollar franchise.
Previously, we covered a bullish thesis on Amer Sports, Inc. (AS) by Stock Analysis Compilation in December 2024, which highlighted strong growth in China, rising brand awareness, and guidance upgrades despite macro headwinds. AS’s stock price has appreciated by approximately 31.53% since our coverage. The Consumer Ascent shares a similar view but emphasizes on Salomon’s Sportstyle-driven growth and multi-engine footwear expansion.
Amer Sports, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held AS at the end of the fourth quarter which was 63 in the previous quarter. While we acknowledge the risk and potential of AS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
