Bernstein reiterates Outperform rating on On Holding stock, citing sustainable growth

Published 08/09/2025, 13:48
Bernstein reiterates Outperform rating on On Holding stock, citing sustainable growth

Investing.com - Bernstein SocGen Group has reiterated an Outperform rating and $70.00 price target on On Holding AG (NYSE:ONON), currently trading at $45.52, following meetings with the company’s CEO and investor relations team last week. According to InvestingPro data, analyst targets range from $40.27 to $80.07, reflecting strong growth potential despite the stock’s high valuation multiples.

The research firm highlighted management’s focus on maintaining sustainable growth through 2030 and beyond, with expansion plans across multiple segments including lifestyle products, apparel, sporting goods retail channels, and direct-to-consumer stores.

Bernstein noted that On Holding is on track to surpass its 2026 targets, with fiscal year 2026 needing less than 20% sales growth and 50 basis points of margin improvement to meet current expectations, which the firm considers "easily achievable."

Regional growth opportunities were emphasized during the meetings, with Asia-Pacific showing rapid expansion and Europe still considered underpenetrated, while management remains committed to premium positioning with no plans to expand into mass-market price points or channels.

Bernstein views On Holding as "the strongest long-term growth compounder in Global Sportswear," citing its low market share across regions, premium product lineup with strong full-price sell-through, diversification across categories, and margin improvement potential from efficiencies, scale and direct-to-consumer growth.

In other recent news, On Holding AG announced its Q2 2025 earnings, which fell short of market expectations. The company reported an earnings per share (EPS) of -0.12, significantly below the forecasted 0.28, resulting in a negative surprise of 142.86%. Revenue also did not meet projections, coming in at CHF 749.2 million compared to the anticipated CHF 816.29 million. Despite these results, the company’s stock saw an increase during market hours, closing at $48.19. These developments highlight the challenges On Holding AG faces in aligning its financial performance with market forecasts.

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