Key Takeaways:
- Amer Sports is executing a comprehensive strategy focused on premium brand positioning while expanding global reach across its engaged outdoor and sports enthusiast customer base.
- AS stock could reasonably reach $75/share by the end of 2029, based on our valuation assumptions.
- This implies a total return of 100% from today’s price of $37.50/share, with an annualized return of 17.2% over the next 4.4 years.
Amer Sports (AS) is establishing new benchmarks in the global premium outdoor and sports equipment industry through strategic focus on high-quality products and diversified brand portfolio growth.
Amer combines its flagship Arc’teryx technical apparel strength with expanding Salomon footwear momentum and Wilson racquet sports heritage to capture the evolving preferences of outdoor enthusiasts and premium sports participants worldwide.
The outdoor sports leader serves customers globally through its comprehensive brand ecosystem spanning technical apparel, outdoor performance equipment, and ball & racquet sports.
This spans from core Arc’teryx premium positioning through Salomon’s emerging sneaker category dominance to Wilson’s established tennis and racquet sports leadership.
AS stock benefits from exceptional momentum, delivering strong Q1 performance with 23% sales growth (26% in constant currency) and achieving positive adjusted operating margin expansion of nearly 500 basis points to 15.8%.
Amer Sports demonstrates clear execution across all segments with record 58% gross margins and continued direct-to-consumer growth driving 39% channel expansion, led by Arc’teryx’s premium positioning and Salomon’s global footwear acceleration.
Amer Sports’ strategic transformation under CEO James Zheng focuses on building premium brand portfolios that provide long-term customer value while developing sustainable growth channels across direct-to-consumer, wholesale partnerships, and geographic expansion for its increasingly global customer base.
With initiatives including Arc’teryx’s 19% omni-comp growth, Salomon footwear crossing $1 billion in sales with accelerating global momentum, and Wilson Tennis 360 soft goods nearly doubling, Amer Sports continues building comprehensive market leadership across premium outdoor and sports categories.
Here’s why AS stock could deliver solid returns through 2029 as it captures global premium outdoor and sports equipment markets while scaling direct-to-consumer opportunities.
See analysts’ full growth forecasts and estimates for Amer Sports (It’s free) >>>
What the Model Says for AS Stock
We analyzed the upside potential for AS stock using valuation assumptions based on its premium brand strength and expanding global market opportunity across outdoor recreation and sports equipment segments.
Analysts see a significant opportunity ahead for Amer Sports given its unique brand portfolio positioning, successful transition to higher margins, and systematic approach to building sustainable revenue streams while maintaining industry-leading customer engagement and pricing power.
Based on estimates of 13.3% annual revenue growth, 10.2% operating margins, and a normalized P/E valuation multiple of 38x, the model projects AS stock could rise from $37/share to $53/share.
That would be a 42% total return, or a 16% annualized return over the next 4.4 years.
Value Amer Sports with TIKR’s Valuation Model today for FREE (Find undervalued stocks fast) >>>
Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for AS stock:
1. Revenue Growth: 13%
Amer Sports delivered exceptional Q1 performance with revenue rising 23% year-over-year (26% constant currency), while achieving record gross margins and sustained profitability expansion across all business segments.
AS expects momentum from premium brand strategy execution, continued global market penetration in outdoor recreation trends, and enhanced direct-to-consumer capabilities through strategic store expansion and digital platform optimization.
We used a 13% forecast reflecting Amer Sports’ proven ability to capture premium market segments while building sustainable competitive advantages and maintaining strong customer loyalty across diverse geographic markets.
2. Operating Margins: 10%
Amer Sports achieved an impressive adjusted operating margin expansion of nearly 500 basis points to 15.8% in Q1, demonstrating successful execution of premium positioning while maintaining strategic investments in brand development and global expansion.
Focus on operational efficiency through direct-to-consumer channel growth and strategic brand portfolio management supports margin expansion while funding product innovation, community engagement programs, and international market development initiatives.
Management targets sustainable long-term operating margin improvement while investing in strategic growth areas, reflecting disciplined capital allocation balancing profitability with market leadership and premium brand positioning across outdoor and sports equipment categories.
3. Exit P/E Multiple: 38x
AS stock trades at premium multiples reflecting its unique brand portfolio position and expanding addressable market opportunity across global outdoor recreation and premium sports equipment segments.
We maintain growth-oriented valuation levels given Amer Sports’ competitive brand advantages, proven execution in premium market positioning, and systematic approach to building competitive advantages through quality product innovation and customer community development.
Long-term competitive advantages from premium brand positioning, comprehensive portfolio integration, and operational scale should support reasonable valuations as execution demonstrates sustained profitability growth and market leadership across outdoor recreation trends.
Build your own Valuation Model to value any stock (It’s free!) >>>
What Happens If Things Go Better or Worse?
Different scenarios for Amer Sports stock through 2030 show varied outcomes based on execution and global outdoor recreation market expansion success: (these are estimates, not guaranteed returns):
- Low Case: Slower international expansion and competitive pressure → 11% annual returns
- Mid Case: Successful brand strategy and margin expansion → 17% annual returns
- High Case: Strong growth across all segments and market leadership → 23% annual returns
Even in the conservative case, AS stock offers attractive returns supported by the company’s unique brand positioning and proven ability to command premium pricing in its highly engaged customer communities.
The upside scenario for AS stock could deliver exceptional performance if Amer Sports successfully captures expanded global market opportunities and maintains market leadership through continued product innovation and brand community development across its premium outdoor and sports equipment portfolio.
See analysts’ growth forecasts and price targets for any stock (It’s free!) >>>
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
