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Investing.com - TD Cowen has reduced its price target on On Holding AG (NYSE:ONON) to $60.00 from $63.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the company maintains impressive gross profit margins of 60.62% and has shown robust revenue growth of 34.92% over the last twelve months.
The price target adjustment comes amid growing concerns about foreign exchange impacts and tariff uncertainties affecting the Swiss athletic footwear company.
TD Cowen noted that recent client inquiries have expressed "modest concerns" about the durability of On Holding’s growth trajectory, incremental foreign exchange changes, and the company’s valuation.
Despite these concerns, the research firm believes On Holding’s growth trajectory excluding foreign exchange effects and its EBITDA margin commentary for the second half of the year will likely reassure investors.
The new $60 price target represents 37 times the firm’s fiscal year 2026 earnings per share estimate, while TD Cowen also observed that short interest in On Holding stock has reached an eight-month high.
In other recent news, On Holding AG has experienced several notable developments. Raymond (NSE:RYMD) James downgraded On Holding’s stock rating from Strong Buy to Outperform, citing foreign exchange impacts due to the strengthening Swiss Franc and updated tariff assumptions, as a significant portion of the company’s footwear is sourced from Vietnam. Meanwhile, Piper Sandler has reiterated its Overweight rating on On Holding, maintaining a $65.00 price target, despite noting a recent underperformance in the stock. This underperformance is attributed to a rotation of fast money from more expensive names and an increase in shorted shares.
In a strategic move, On Holding has expanded its Board of Directors by appointing Helena Helmersson, a former CEO of H&M Group, as an independent member. Helmersson’s extensive experience in retail and sustainability is expected to support On’s strategic direction. Additionally, in the broader retail sports industry, a merger between Dick’s Sporting Goods (NYSE:DKS) and Foot Locker (NYSE:FL) was announced, with potential implications for sportswear brands, including On Holding. The merger aims to expand the total addressable market and leverage operating expertise, which could influence brand partnerships. These recent developments highlight significant shifts in the sportswear and retail sectors.
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