Amer Sports Shares Surpass Analyst Target Price; What’s Next?

Recently, shares of Amer Sports Inc (Symbol: AS) have exceeded the average 12-month analyst target price of $32.19, currently trading at $37.37 per share. When a stock reaches an analyst’s target price, the analyst typically has two options: downgrade the stock based on valuation or adjust their target price upward. The reaction may also be influenced by recent developments within the company that could justify a higher valuation.

The average target for Amer Sports Inc is drawn from the viewpoints of 14 analysts within the Zacks coverage universe. However, there is a range of opinions. Some analysts have set lower targets, with one forecasting a price of $25.00, while others have set targets as high as $40.00. The standard deviation among these targets is $4.202.

This concept of using the average target price reflects a collective perspective, aggregating insights from various analysts rather than relying on a single expert. As Amer Sports trades above the average target price of $32.19, investors are prompted to reassess their positions. They must decide whether $32.19 is merely a stepping-stone toward a higher target or if the current valuation warrants cautious investment adjustments. Below is a breakdown of current analyst ratings for Amer Sports Inc:

The average rating shown in the table ranges from 1 to 5, where 1 indicates a Strong Buy and 5 corresponds to a Strong Sell. This analysis draws on data provided by Zacks Investment Research via Quandl.com, offering insights into the current sentiment surrounding Amer Sports Inc.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.