Amer Sports shares rose 4% on Wednesday after UBS reiterated its buy rating on the Finnish sporting equipment company and raised its price target to $52 per share from $50.
The new target suggests more than 45% upside from Tuesday’s $35.74 close.
The company, which owns well-known brands including Arc’teryx and Wilson, has been labelled an “exceptional growth stock” by UBS analyst Jay Sole.
He pointed to better-than-expected second-quarter results and a robust full-year outlook as evidence of Amer Sports’ strong fundamentals.
The stock surged 4.8% to $37.46 on Wednesday. At the time of writing, it was trading at $36.92.
Arc’teryx and Salomon drive performance
Sole noted that Amer Sports’ Arc’teryx and Salomon brands were key drivers of its recent quarterly performance.
He argued that the market underestimates both the resilience of Arc’teryx’s business model and the brand’s strong positioning in China.
“The market underappreciates the strength of Arc’teryx’s business model and how well positioned the company is in China, in our view,” Sole said.
He added that the recent decline in Amer Sports’ stock following results was likely tied to positioning and wholesale channel noise, rather than any fundamental weakness.
The company’s quarterly performance, underpinned by these two brands, reinforced UBS’s conviction that Amer Sports is positioned to capitalise on rising demand for premium sports and outdoor gear globally.
Growth outlook and strategy
UBS forecasts Amer Sports’ sales could grow at a compound annual growth rate of nearly 16% over the next five years.
According to Sole, growth will be supported by direct-to-consumer (DTC) expansion at Arc’teryx, multichannel progress for Salomon, and deeper international expansion for the Ball & Racquet segment, which includes Wilson.
By channel, UBS expects faster DTC growth, led by new retail store openings in North America and China alongside rising e-commerce volumes.
This shift aligns with a broader industry trend of global sports brands focusing on direct sales to improve margins and strengthen consumer engagement.
Despite some disruption in wholesale channels, UBS stressed that Amer Sports’ long-term growth case remains intact.
Market skepticism vs strong fundamentals
While UBS maintains a bullish stance, Sole acknowledged that some investors remain cautious.
Concerns stem from Amer Sports’ significant exposure to China, where consumer demand faces headwinds, as well as broader global economic uncertainty.
Still, UBS argues these risks are more than offset by the company’s strong fundamentals and growth opportunities.
“We think AS is a growth stock,” Sole wrote. “Our sense is that the market is sceptical of Amer’s growth potential because of its high leverage to China amid a challenging consumer environment and ongoing global macro uncertainty. However, our view is Amer’s growth fundamentals remain strong.”
Amer Sports’ shares have risen around 30% so far in 2025.
The additional 4% jump on Wednesday following UBS’s upgrade highlights renewed investor optimism about the company’s long-term prospects.
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