Amer Sports Oyj (AMEAS), the maker of Salomon and Atomic skiing equipment, climbed to a five-year high as analysts raised their price estimates, citing prospects for a rebound in winter-sports demand.
Amer Sports advanced as much as 6.9 percent to 12.55 euros in Helsinki, where the company is based. That’s the biggest intraday gain in more than three months and the highest price since January 2008. Volume exceeded 270,000 shares, more than the six-month daily average. The stock was the second-best performer in the Stoxx Europe 600 index today.
Earnings before interest and taxes will rise 30 percent this year, supported by a recovery in winter sports, growth in sports apparel and cost efficiency, Kalle Karppinen, an analyst at Danske Bank A/S (DANSKE), said in a note to investors today. He increased his 12-month price target to 13 euros from 11 euros and reiterated his buy recommendation on the stock. Mika Karppinen, an analyst at Evli Bank Oyj, also increased his price target to 13.50 euros from 12.50 euros.
Sales reached a record 2.06 billion euros ($2.8 billion) in 2012 and Ebit excluding non-recurring items rose about 1 percent to 136.5 million euros, the company said yesterday. Amer Sports said it expects both figures to increase this year after last year’s “mild” winter.
“The company’s guidance is very careful and we expect them to upgrade it during the year,” Sauli Vilen and Antti Viljakainen, analysts at Helsinki-based equity-research company Inderes Oy said in a note. They upgraded their recommendation to accumulate from reduce, increasing the price target to 12.50 euros from 11 euros. “We expect growth to continue strongly despite a weak environment.”
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