Citi reiterates Neutral on On Holding shares citing strong positioning in footwear market

Published 16/01/2025, 14:00
Citi reiterates Neutral on On Holding shares citing strong positioning in footwear market

On Thursday, Citi analyst Paul Lejuez maintained a Neutral rating and a $65.00 price target for On Holding AG (NYSE:ONON). Following meetings at the ICR conference in Orlando, Florida, the company's co-CEOs Marc Maurer and Martin Hoffman shared insights that suggest a positive trajectory for the brand and its strategy. Management did not pre-announce holiday results, but the tone was optimistic, hinting at a potentially stronger fourth quarter than anticipated.

The co-CEOs expressed confidence in their distribution and segmentation strategy, noting improvements over the past few years. They also highlighted consumer willingness to purchase higher-priced products. The recent marketing campaign featuring Zendaya contributed to significant gains among younger female customers, and management sees further opportunities in targeting the younger male demographic.

Lejuez's commentary reflects a belief in On Holding AG's strong position in the footwear market. The company is expected to continue capturing market share, which should support robust double-digit top-line growth and margin expansion in fiscal year 2025 and beyond. The analyst's outlook is based on the positive feedback from the management's strategy and market positioning discussions during the conference.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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