UBS Forecasts 32% EPS CAGR for Amer Sports (AS) on Q3 Beat and Strength of Arc’teryx, Salomon Brands

Amer Sports Inc. (NYSE:AS) is one of the best new stocks to invest in. On November 19, UBS raised the firm’s price target on Amer Sports to $54 from $52 and kept a Buy rating on the shares. The firm noted the growth prospects of Amer Sports’ brands, particularly Arc’teryx and Salomon, due to the company’s positive Q3 2025 earnings report, which surpassed expectations and led the company to raise its guidance. UBS forecasts a 32% EPS CAGR over the next 5 years.

In Q3 2025, Amer Sports’ revenue surged 30% year-over-year to total $1.76 billion. This number surpassed Street expectations by $29.35 million. This performance fueled improvements in profitability, with the adjusted gross margin increasing by 2.4% to reach 57.9%. The adjusted operating margin also expanded by 1.3% to 15.7% for the quarter.

Consequently, adjusted net income climbed to $185 million, which was a significant increase from $71 million in the prior year period, resulting in adjusted diluted EPS of $0.33, up from $0.14 last year. The EPS was $0.08 higher than guidance. The company’s growth was broad-based across segments and geographies. DTC sales skyrocketed by 51%, led by the Solomon brand in Greater China and the APAC region. Segment-wise, Technical Apparel revenue (led by Arc’teryx) increased 31% to $683 million.

Amer Sports Inc. (NYSE:AS) designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories internationally. It operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports.

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Disclosure: None. This article is originally published at Insider Monkey.