Feb 26 Reuters Amer Sports shares rose as much as 3.5 on Monday as analysts initiated coverage with largely bullish ratings and highlighted strong demand for the Wilson tennis racket maker39;s premium outdoor and sportswear products in China.

The company returned to public markets on Feb. 1 after selling shares at a discounted price in its U.S. IPO for a valuation of 6.3 billion. China39;s Anta Sports bought the company in 2019.

At least 10 brokerages, including TD Cowen and Bernstein, on Monday rated the stock outperform and UBS assigned the highest price target of 23.

The shares were trading at 16, giving the company a market value of 8 billion, in early trading on Monday, compared with the IPO price of 13.

I think Arc39;teryx and Salomon are being well received by the market in China. Both brands have been catering to the region with unique instore experiences, products and campaigns, Jane Hali Associates senior analyst Jessica Ramirez said.

TD Cowen expects China to generate 43 of the company39;s total incremental sales growth into fiscal 2027. Revenue from China rose about 68 to 593 million for the nine months ended Sept. 30.

Revenues are growing, margins are growing and adjusted EBITDA is growing. It will take some time to grow into its valuation, but this is a business that will endure, said Thomas Hayes, chairman of hedge fund Great Hill Capital.

Analysts also expect Amer Sports to improve its performance in the U.S., helped by customers upgrading sports…