BofA warns Fed risks policy mistake with early rate cuts
On Wednesday, TD Cowen maintained its Buy rating on On Holding AG (NYSE: ONON) but reduced the price target from $66.00 to $64.00. The firm acknowledged the company’s strong performance in the fourth quarter, noting significant growth across various regions, channels, and product categories. On Holding’s Q4 results showcased a year-over-year increase of 124% in the Asia-Pacific region and a 48% rise in direct-to-consumer sales. With a market capitalization of $16.21 billion and impressive revenue growth of 29.36% over the last twelve months, InvestingPro data reveals the company’s robust expansion trajectory.
The management at On Holding has provided initial guidance for FY25, which points to robust growth and improved margin expansion. TD Cowen believes that this guidance is achievable and reflects a balance between ambition and realism, mirroring the company’s initial FY24 projections relative to expectations. According to InvestingPro analysis, the company maintains strong gross profit margins of 60.63% and has received upward earnings revisions from 5 analysts, supporting the optimistic outlook. Discover 14 additional exclusive ProTips and comprehensive financial metrics with an InvestingPro subscription.
On Holding continues to excel in premium innovation and franchise management, with successful product lines such as Cloud 6, Cloudrunner, Cloudmonster 2, Cloudsurfer 2, and The Roger. These products have not only contributed to premium distribution but have also resulted in high financial returns for the company.
The fourth-quarter earnings per share (EPS) reported above the EBIT line were CHF 0.23, with an adjusted EPS of $0.33. These figures surpassed both the consensus estimate of CHF 0.18 and TD Cowen’s estimate of CHF 0.28. Furthermore, On Holding’s Q4 gross margin showed a significant improvement of 350 basis points on a two-year stack, underlining the brand’s premium market position during a promotional holiday season.
The company’s strategic positioning at the intersection of sport and lifestyle has been successful in attracting a growing base of younger consumers, contributing to its positive outlook and performance. With an overall Financial Health score of GREAT from InvestingPro, and analyst targets suggesting potential upside, On Holding demonstrates strong fundamentals. Access the comprehensive Pro Research Report, available for this and 1,400+ other top US stocks, for deeper insights into the company’s valuation and growth prospects.
In other recent news, On Holding AG has reported impressive financial results that have captured the attention of several analyst firms. The company announced a revenue growth of over 41% on a constant currency basis, significantly surpassing previous guidance. Its adjusted EBITDA reached nearly 100 million CHF, exceeding expectations by approximately 10 million CHF. Looking forward, On Holding AG has set a revenue growth target of at least 27% for 2025, with an adjusted EBITDA margin increase anticipated to range between 17.0% and 17.5%.
Analyst firms have responded positively to these developments. Bernstein has maintained an Outperform rating with a $70 price target, emphasizing the company’s strong direct-to-consumer sales and favorable holiday season performance. KeyBanc Capital Markets also reaffirmed an Overweight rating and a $68 price target, noting the company’s effective execution and global brand recognition. Barclays (LON:BARC) increased its price target to $64, citing a detailed examination of financial projections and a positive outlook on the company’s future performance.
Needham reiterated its Buy rating with a $64 price target, highlighting On Holding’s robust margin performance and growth in distribution channels. Similarly, Truist Securities maintained a Buy rating with a $61 price target, following the company’s strong fourth-quarter performance and optimistic guidance for 2025. These developments reflect a broad consensus among analysts about On Holding AG’s potential for continued growth and profitability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.