Amer Sports Gains 3% after Jefferies Buy

Overview

Jefferies initiated coverage on Amer Sports Inc (NYSE:AS) on 13 Oct 2026, assigning a Buy rating and a $42 price target.

Valuation and Targets

Jefferies' target implies a 25x multiple on FY27E earnings per share of $1.67. The stock currently trades at approximately 17x FY2 P/E, near the bottom of its historical 17‑46x range and below its ~28x average, with a 31% public‑float overhang.

Brand Growth Outlook

Salomon is projected to generate sales exceeding $2.5 bn in 2026, representing a 30% increase year‑over‑year, and to reach $3 bn before 2028, with a longer‑term ambition of $5 bn by 2031. The XT‑6 model accounts for about 15% of Salomon sales, while the XT‑Whisper line grew from zero to nearly 1 million pairs within 18 months, with roughly 80% of Sportstyle purchasers being new to the brand.

Arc’teryx's market share stands at 10.4% in China, 4.2% in the Americas, and 1.1% in EMEA, indicating significant potential for store expansion and digital engagement, especially as growth shifts toward Western markets.

Financial Projections

Gross margins are expected to improve from 53% in 2023 to approximately 61% in 2026, driven by a higher‑margin footwear and Sportstyle mix. Jefferies forecasts earnings per share growth of 22% in FY2027E.

Risks

The price target incorporates considerations of near‑term macro and weather risks.