• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Amer Sports down as Wells Fargo downgrades stock to ‘equal weight’

by October 14, 2024
written by October 14, 2024

Investing.com — Shares of Amer Sports (NYSE:AS) fell 3.5% in pre-open trade on Monday, following a downgrade from Wells Fargo, which revised its rating on the stock to “equal weight” from “overweight.” 

The downgrade comes after a rally in Amer Sports’ stock, which had surged over 85% since August, buoyed by macroeconomic news such as China’s stimulus efforts. 

With this recent rally pushing the stock to a level Wells Fargo analysts deemed more balanced, the brokerage signaled that the risk-reward profile no longer justified a bullish stance​.

The revised outlook also coincided with Wells Fargo raising the stock’s price target from $17 to $19, reflecting a reassessment of the company’s long-term potential, though tempered by more cautious near-term expectations. 

Analysts stressed on the importance of maintaining a neutral stance, noting that while Amer Sports’ growth, especially in China, remains robust, macroeconomic uncertainties could complicate the company’s performance. 

China, which has become a key driver for the company, showed a 54% increase in revenue during the second quarter of 2024 and over 60% growth during the country’s Golden Week. 

However, Wells Fargo warned that a slowdown in China’s growth could present challenges, given the region’s critical contribution to the company’s revenue and margins​.

Wells Fargo pointed to Amer Sports’ diversified portfolio, with core segments including Arc’teryx in technical apparel, Salomon in outdoor performance, and Wilson in ball and racquet sports. Among these, Arc’teryx was flagged as the “crown jewel” of the business, contributing to strong top-line growth. 

However, analysts cautioned that despite long-term optimism, near-term turbulence could arise as insiders begin to unwind positions following the expiration of lock-up periods after Amer’s IPO earlier in 2024.

The downgrade underscores Wells Fargo’s shift to a more cautious outlook, driven by concerns about the stock’s elevated valuation following its recent rally. 

At approximately 14 times forward EBITDA, Amer Sports’ valuation now appears more balanced, according to the analysts. 

Additionally, the brokerage flagged the potential impact of stock volatility and macroeconomic conditions in Europe and North America, regions where growth has been more subdued compared to the explosive performance in China.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Boeing fine-tunes job cuts as major buyer slams 777X jet delay
next post
China-Europe rivalry heats up at Paris car show as EV tariffs loom

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!








    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Barbie, Monopoly toymakers see bright holiday season despite tariff pressure

      October 29, 2025
    • Target is eliminating 1,800 corporate jobs as it looks to reclaim its lost luster

      October 24, 2025
    • X-ray tables, hidden cameras: The tech in rigged poker games linked to the mob and NBA

      October 24, 2025
    • Travis Kelce part of investor group aiming to revive struggling Six Flags

      October 24, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (660)
    • Stock (6,426)

    Latest News

    • Barbie, Monopoly toymakers see bright holiday season despite tariff pressure
    • Target is eliminating 1,800 corporate jobs as it looks to reclaim its lost luster

    Popular News

    • Fed rate cuts to help bolster commodity demand: Wells Fargo
    • FDA officially authorizes Zyn nicotine pouches for sale following health review

    About The Significant deals

    • About us
    • Contacts
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy