Michael Hakes - CFA, MBA Amer Sports AS - N DON'T BUY Apr 19, 2024

Near-term tailwinds came from China recently, which let Amer break out above its IPO price, despite an analyst downgrade today. Would buy a lot on a pullback. The brand loyalty for their sporting goods is solid. They have many revenues streams across many sports.

They just had a blow-out number in retail numbers in China. They have a diverse revenue stream from various sports.

We like AS and think they have some good brands under their umbrella. Arcteryx is driving the growth but they also own Wilson which is a lower growth but staple type of sprts name. There could be some 'fad risk' if the arctryx brand slows down, and discretionary names are not in favour currently either, so an investor can likely be patient on a name like this. Overall, though, trading at 32X forward earnings and with 22% top line growth expected this year with mid-teends for the next few years after, we think AS look fine here. We don't think we would make the comparison to ATZ at this stage. The Arcteryx brand has potential, we just aren't sure it is 'there quite yet.
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