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On Tuesday, Evercore ISI updated its outlook on On Holding AG (NYSE:ONON), increasing the price target from $60.00 to $70.00, while reaffirming an Outperform rating. The firm’s analysts highlighted the company’s robust first-quarter performance, particularly in terms of revenue growth. The company, currently valued at $16.6 billion, has demonstrated impressive growth with revenue increasing 29.4% over the last twelve months.
The adjusted EBITDA for On Holding AG reached CHF 120 million, surpassing both the consensus estimate of CHF 110 million and Evercore ISI’s own forecast of CHF 112 million. Despite facing headwinds from tariffs and global cross-currency pressures against the Swiss Franc, which led On Holding AG to revise its EBITDA margin range for the year, the company’s first-quarter demand outperformed market expectations. This strong performance prompted the firm to increase its annual revenue growth projection to over 28% from the previously stated target of over 27%. The company maintains impressive gross profit margins of 60.6% and according to InvestingPro data, holds more cash than debt on its balance sheet.
Evercore ISI’s commentary emphasized the significance of the raised revenue targets, especially considering it comes after only one quarter and amid potential risks of macroeconomic volatility and price elasticity as the brand adjusts its pricing strategy. While InvestingPro analysis suggests the stock is currently trading above its Fair Value, the analysts remain confident in On Holding AG’s prospects, as indicated by the maintained Outperform rating based on the company’s first-quarter strength. InvestingPro subscribers have access to 16 additional key insights about ONON and comprehensive analysis through the Pro Research Report.
In other recent news, On Holding AG reported a strong financial performance with a 40% increase in revenue on a constant currency basis for the first quarter, surpassing previous guidance. This robust growth prompted BTIG to raise the company’s price target to $70, maintaining a Buy rating, and Needham to increase their target to $62, also with a Buy rating. Citi, while upgrading the stock from Neutral to Buy, adjusted its price target to $60, reflecting challenges such as foreign exchange rates and tariffs. The company has also revised its fiscal year 2025 revenue guidance upwards by 100 basis points to 28% on a constant currency basis.
On Holding AG is undergoing a leadership transition to a single-CEO model, with Martin Hoffmann taking over as CEO. This change follows Co-CEO Marc Maurer’s decision to step down, a move described as part of a planned transition rather than a response to business challenges. The company has announced additional senior appointments, including a new Chief People Officer and Chief Innovation Officer, to strengthen its leadership team. Despite these changes, analysts like Truist Securities maintain confidence in On Holding AG’s strategy, reaffirming a Buy rating with a $61 price target. The company continues to focus on innovation and market expansion while managing external challenges such as tariffs and foreign exchange impacts.
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