Citi Names Amer Sports Top Pick, Citing Five-Year Growth Potential

Citigroup has reiterated its confidence in Amer Sports (NYSE: AS), naming the company its top pick in the athletic sector following a recent investor day event. Analyst Paul Lejuez cited a strong five-year growth outlook and opportunities for profit margin expansion as key drivers for the bullish stance.

In a research note to clients, Lejuez maintained a Buy rating on the stock and a price target of $50. The firm's earnings per share (EPS) forecasts for fiscal years 2026 and 2027 remain at $1.44 and $1.69, respectively. These projections correspond to an EV/EBITDA multiple of 16.7x for FY2026 and 14.5x for FY2027.

Upgraded Long-Term Guidance

During its investor day in Annecy, France, Amer Sports provided an updated long-term financial outlook that underpins Citi's positive view. While the company maintained its overall five-year revenue compound annual growth rate (CAGR) target in the low-to-mid teens, it upgraded forecasts for key brands.

• Salomon: Revenue CAGR target raised to mid-teens through fiscal 2031, up from a previous low-to-mid teens forecast.
• Wilson: Revenue CAGR target increased to high-single-digits from a prior mid-to-high-single-digits range.
• Profitability: The company continues to target annual EBIT margin expansion of 30 to 70 basis points.

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This revised guidance implies a potential high-end EPS of $3.73 by fiscal 2031, a significant increase from the $2.83 implied for fiscal 2030 under the previous forecast.

Path to Growth

Amer Sports management outlined a clear strategy for achieving its targets. Sales growth is expected to be faster in the initial years of the five-year plan, closer to the mid-teens, before moderating. Margin expansion will initially be driven by gross margin improvements, with leverage from selling, general, and administrative (SG&A) expenses becoming a more significant contributor in the latter half as recent investments in technology and new stores mature.

Reflecting near-term momentum, the company also raised its revenue growth guidance for the third quarter of fiscal 2026 to a range of 20% to 22%, up from its prior forecast of 18% to 20%. Other Wall Street firms have also weighed in, with UBS and Truist reiterating buy ratings, while Morgan Stanley resumed coverage with an Equalweight rating.