UBS has released a research note indicating that the market is underestimating the earnings resilience of ANTA Sports, prompting an upward revision of its target price from HK$104.5 to HK$108.5 while maintaining a "Buy" rating.
The bank highlights that ANTA Sports' multi-brand portfolio serves as a strong support mechanism, with each brand capable of delivering incremental growth according to its respective stage in the business cycle, offering greater resilience compared to single-brand peers.
UBS also points out that ANTA's overseas expansion has yet to be fully reflected in its valuation. This includes the global operations of Amer Sports, the international development of the core ANTA brand, and potential synergies arising from Puma's worldwide network.
The report further notes that ANTA Sports is currently trading at 11 times its projected 2027 earnings. Considering the company's expected net profit compound annual growth rate of 12% from 2026 to 2028, alongside a dividend yield of approximately 4%, UBS believes the stock's value is undervalued.