Feb 26 (Reuters) - Shares of Amer Sports rose about 7% before the bell on Monday as brokerages started coverage of the company's stock, with analysts focusing on strong demand for its outdoor and sportswear products in China.
The company, which makes Wilson tennis rackets, was bought by China's Anta Sports in 2019 and recently went public again on Feb. 1 in a tepid debut.
However, analysts believe Amer Sports' brands such as Arc'teryx and Salomon could help drive sales globally as consumers increasingly spend on running shoes and outdoor clothing.
Amer Sports had a market value of $7.77 billion, as of Friday's close.
At least six brokerages including TD Cowen and Bernstein on Monday rated the stock "outperform". Evercore ISI assigned the highest price target of $21 and said it expects Amer to benefit from Anta's deep knowledge of the China market, helping it compete with North American and European brands in the country.
"I do believe that the Anta relation can assist them as they are familiar with the market and could aid them in localizing," Jane Hali & Associates senior analyst Jessica Ramirez said.
"I think Arc'teryx and Salomon are being well received by the market in China. Both brands have been catering to the region with unique in-store experiences, products and campaigns."
Bernstein analysts expect China to continue to deliver high revenue growth for Amer Sports, with a compound annual growth rate of 26% between 2023 and 2028.
In 2023, the company's revenue from China rose about 68% to $593 million for the nine months ended Sept. 30.
Analysts also expect Amer Sports to gain market share in the United States, with consumers in the country looking to upgrade their camping gear and sports equipment following the pandemic.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shounak Dasgupta)
((AnanyaMariam.Rajesh@thomsonreuters.com; Twitter: ))
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