Amer Sports Inc (AS US): Buy: A bright postcard from Annecy

Amer Sports (AS US) — HSBC maintains Buy with TP cut to USD40 (from USD48) on a higher WACC of 9.7% driven by a higher sector beta, partly offset by an 8% increase in 2026-28e EBIT estimates; the TP implies c52% upside. The global sporting goods sector faces macro headwinds with rising inventories and promotions, but Amer remains largely immune given its focus on the faster-growing technical and premium outdoor segment. In H1 2026, the group delivered 32% sales and 83% adjusted EBIT y-o-y growth. At its Investor Day in Annecy on 17 September, the group reiterated its long-term growth algorithm (2026-2031e): group sales CAGR of low-double-digit to mid-teens and annual adjusted operating margin expansion of 30-70bps. Salomon targets a mid-teens sales CAGR through 2031, growing from USD2.5bn in 2026e to USD3bn by 2028 with a USD300bn TAM. The stock trades at a trough 12m forward PE of 17.0x (vs 31.8x average since IPO), which we view as compelling given the growth prospects. Downside risk