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On Wednesday, TD Cowen showed confidence in On Holding AG (NYSE:ONON), raising the price target on the company’s shares to $63.00, up from the previous $58.00, while reiterating a Buy rating. The stock has demonstrated remarkable momentum, delivering a 58% return over the past year. According to InvestingPro data, the stock’s technical indicators suggest it’s currently in overbought territory, with significant price volatility observed. The firm’s analysts believe that On Holding AG demonstrates the strongest top-line trends across the global sector and continues to be a top pick. The valuation uplift in the sector is attributed to the anticipated benefits of a comprehensive trade deal with Vietnam and others, following a recent agreement with China that indicates a favorable outcome is likely.
On Holding AG is considered to be in an advantageous position within the sector, thanks to its higher mark-ups, pricing power, innovative products, and operating leverage. The company maintains impressive gross profit margins of 60.6% and demonstrates solid financial health with a current ratio of 2.8, indicating strong operational efficiency and liquidity management. TD Cowen views the company’s consensus estimates and guidance as conservative moving into FY26, suggesting that there is room for positive surprises in the company’s financial performance.
The analysts project that On Holding AG has a clear path to achieving CHF 3 in earnings per share (EPS) and a 700 million annualized run rate in Free Cash Flow within the next four years. Additionally, they anticipate the company to achieve a mid-teens EBIT margin in the same timeframe, aligning more closely with its peers compared to a low-double-digit EBIT margin forecasted for F25E.
This price target adjustment reflects TD Cowen’s analysis of On Holding AG’s current market position and its potential for growth, supported by a favorable trade environment and the company’s strong financial and operational strategies. The firm’s outlook for On Holding AG remains positive, with the raised price target signaling a belief in the company’s continued success. Based on InvestingPro’s comprehensive analysis, the stock appears to be trading above its Fair Value. Investors seeking deeper insights can access the detailed Pro Research Report, which provides extensive analysis of On’s valuation metrics, growth prospects, and market position among 1,400+ top stocks.
In other recent news, On Holding AG has captured the attention of several analyst firms with its strong financial performance and growth potential. Truist Securities increased its price target for On Holding to $69, maintaining a Buy rating, citing the company’s robust growth trajectory and strong market demand. Bernstein also maintained an Outperform rating with a $70 price target, highlighting On Holding’s revenue growth that surpassed estimates and led to an upward revision in future guidance. KeyBanc Capital Markets raised its price target to $68, noting the company’s successful brand positioning and potential for better-than-expected financial results due to strategic initiatives.
Additionally, BofA Securities lifted its price target to $75, reflecting confidence in On Holding’s organic sales growth, which is projected to exceed company guidance. Evercore ISI also adjusted its price target to $70, maintaining an Outperform rating, after On Holding’s first-quarter revenue growth surpassed expectations. The company reported adjusted EBITDA of CHF 120 million, exceeding consensus estimates and prompting an increase in annual revenue growth projections. These recent developments underscore the analyst community’s positive outlook on On Holding AG’s financial performance and growth prospects.
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