Why Truist Sees Long-Run Upside in Amer Sports, Inc. (AS)

Amer Sports, Inc. (NYSE:AS) is among the stocks under $50 to buy now. On January 14, Joseph Civello, an analyst at Truist, lifted the price target on Amer Sports, Inc. (NYSE:AS) to $46 from $45 and reiterated a Buy rating. According to the firm, the “durable growth levers across the business” are the basis for its sustained positive outlook.

What strengthens this bullish story is the company’s modest brand awareness in the U.S., low competition, and appealing higher-income clientele, as these factors back substantial growth prospects in the long haul for Amer Sports, Inc. (NYSE:AS), the firm highlighted. It also added that the company’s management remains positive as well. The leadership has outlined a long-term model through 2030 that includes a CAGR in the low double-digits to mid-teens and an annual acceleration in adjusted operating margin of 30-70 basis points or more.

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With multiple growth projects across several brands, a set execution history in China, and the probability of margin improvements from scale and transition toward softgoods, Amer Sports, Inc. (NYSE:AS) is well-positioned to achieve its five-year EPS CAGR of more than 25% and FY30 EPS of over $2.50 targets.

Amer Sports, Inc. (NYSE:AS) is a Finland-based provider of sports equipment, apparel, footwear, and other related accessories. Founded in 1950, the company operates through Technical Apparel, Outdoor Performance, and Ball & Racquet Sports segments.

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Disclosure: None.