20 Aug Buy this ‘exceptional growth stock’ for more than 45% upside, says UBS
Amer Sports is an underappreciated growth stock, according to UBS. UBS reiterated a buy rating on the Finnish sporting equipment stock on Wednesday, and raised its price target to $52 per share from $50. UBS’ forecast implies more than 45% upside from Tuesday’s $35.74 close. Amer Sports is the parent company of brands including Arc’teryx and Wilson. Analyst Jay Sole labeled Amer Sports as an “exceptional growth stock” thanks to what he said are promising opportunities tied to its Arc’teryx and Salomon brands. Both were standout components of the company’s recent quarterly results, he said, noting that the company’s better-than-expected second-quarter results and its strong full-year outlook helped cement his view. AS YTD mountain Amer Sports stock in 2025. “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. “While the stock price fell over the print, we believe this was mostly due to positioning and wholesale channel noise. Neither factor impacts our thesis.” The analyst also said Amer Sports could potentially expand its sales at a nearly 16% compound annual growth rate over the next five years. “We expect AS to drive this growth via DTC [direct-to-consumer] expansion in Arc’teryx, multichannel growth in Salomon, and deeper international expansion in Ball & Racquet,” he said. “By channel, we model faster DTC growth given retail store rollout primarily in North America and China and higher eCommerce sales.” “We think AS is a growth stock. Our sense is that the market is skeptical 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,” the analyst added. Shares have gained roughly 30% so far in 2025.