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On Wednesday, BTIG analyst Janine Stichter confirmed a Buy rating with a $67.00 price target for On Holding AG (NYSE:ONON), following the company’s announcement of its transition to a single CEO structure. On Holding, a $13.8 billion market cap company known for its performance running shoes and apparel, revealed that Co-CEO Marc Maurer will step down on June 30 but will continue to provide counsel to the Partners and Board of Directors until March 2026. InvestingPro data shows the company maintains impressive gross profit margins of 60.6% and has achieved 29% revenue growth over the last twelve months.
According to Stichter’s statement, the change in leadership does not reflect any current business challenges but is part of a long-considered transition. This assessment aligns with InvestingPro analysis, which rates the company’s overall financial health as "GREAT" with strong growth metrics. The company is expected to undergo a smooth shift to a traditional management structure, with Co-CEO and CFO Martin Hoffmann taking over as CEO on July 1. Hoffmann has been with On since July 2013 and took on the Co-CEO role in January 2021 after a career that included positions at Valora Retail and CTcon GmbH.
The company is also preparing for the search for a new CFO, considering both external and internal candidates, while Hoffmann will remain in his current roles until a successor is appointed. The move away from a dual CEO system is seen as a natural evolution for the growing business, with founders often stepping aside as the company scales.
Furthermore, On Holding announced the appointment of Katarina Berg as Chief People Officer, Scott Maguire as Chief Innovation Officer, Adib Sisani as Chief Communications Officer, and Craig Jones as Chief Supply Chain Officer. The latter two positions are new senior roles within the company, indicating an investment in leadership to bolster innovation and operational capacity.
In other recent news, On Holding AG has reported significant financial achievements, with record net sales exceeding CHF 2.3 billion and a net income of CHF 242 million for fiscal year 2024. The company is transitioning to a single-CEO model, appointing Martin Hoffmann as the sole CEO while Co-CEO Marc Maurer will step down, a move that has been met with mixed reactions from the market. Truist Securities maintains a Buy rating with a $61 price target, expressing confidence in the company’s strategic direction despite the leadership change. Similarly, KeyBanc Capital Markets holds an overweight rating with a $68 price target, indicating optimism about On Holding’s future under new leadership.
HSBC has upgraded On Holding AG from Hold to Buy, raising the price target to $58, citing improved financial forecasts and a strategic management approach. TD Cowen also reaffirms a Buy rating with a $64 target, highlighting the company’s strong growth strategy and market position. Piper Sandler maintains an Overweight rating with a $62 target, noting the company’s premium market positioning and consistent performance. These developments underscore analysts’ confidence in On Holding AG’s ability to navigate its leadership transition and continue its growth trajectory.
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