Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

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

admin by admin
October 14, 2024
in Stock
0
Amer Sports down as Wells Fargo downgrades stock to ‘equal weight’
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

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

Previous Post

Elliott requests special meeting with Southwest Airlines, Bloomberg News reports

Next Post

Bitcoin mining profitability drops in September as hashrate rises 1.7% amid stagnant prices

admin

admin

Next Post
Bitcoin mining profitability drops in September as hashrate rises 1.7% amid stagnant prices

Bitcoin mining profitability drops in September as hashrate rises 1.7% amid stagnant prices

Trending News

China eases rules for foreign investment in listed companies

China eases rules for foreign investment in listed companies

November 1, 2024
Five potential geopolitical shocks that could shake markets in 2025

Five potential geopolitical shocks that could shake markets in 2025

January 11, 2025
Exclusive-China to issue $284 billion of sovereign debt this year to help revive economy, sources say

Exclusive-China to issue $284 billion of sovereign debt this year to help revive economy, sources say

September 26, 2024
Subscribe to Insightful Word


    Recent News

    BBVA reassesses Sabadell Bid after Spanish government imposes integration freeze

    BBVA reassesses Sabadell Bid after Spanish government imposes integration freeze

    June 25, 2025
    Long US30: price Sustains above 43K, targets 44K on risk rally and fed clarity

    Long US30: price Sustains above 43K, targets 44K on risk rally and fed clarity

    June 25, 2025
    NATO leaders agrees on increasing defence spending to 5%

    NATO leaders agrees on increasing defence spending to 5%

    June 25, 2025
    BMBL stock rockets 26% after job cuts and raised Q2 revenue forecast

    BMBL stock rockets 26% after job cuts and raised Q2 revenue forecast

    June 25, 2025

    Recent News

    BBVA reassesses Sabadell Bid after Spanish government imposes integration freeze

    BBVA reassesses Sabadell Bid after Spanish government imposes integration freeze

    June 25, 2025
    Long US30: price Sustains above 43K, targets 44K on risk rally and fed clarity

    Long US30: price Sustains above 43K, targets 44K on risk rally and fed clarity

    June 25, 2025

    Latest News

    • BBVA reassesses Sabadell Bid after Spanish government imposes integration freeze
    • Long US30: price Sustains above 43K, targets 44K on risk rally and fed clarity
    • NATO leaders agrees on increasing defence spending to 5%

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.