On Holding stock price target reiterated at $66 by Raymond James

Investing.com - Raymond James has reiterated its Outperform rating and $66.00 price target on On Holding AG (NYSE:ONON) following the company’s strong second-quarter 2025 performance. According to InvestingPro data, the company maintains impressive gross profit margins of 60.6% and has demonstrated robust revenue growth of 34.9% over the last twelve months.

The Swiss athletic footwear company exceeded second-quarter expectations with broad-based strength across both revenue and margins, prompting management to raise its full-year 2025 guidance despite growing macroeconomic challenges from foreign exchange rates and tariffs.

On Holding demonstrated robust demand across its product lines, with direct-to-consumer channels growing 47%, apparel sales increasing 68%, and geographic expansion showing impressive results, particularly in Asia-Pacific where sales grew 101%, including China where sales doubled year-over-year.

The company raised its 2025 gross margin guidance by 50 basis points at the midpoint despite facing increased tariff headwinds, which Raymond James estimates represent an unmitigated 300 basis point annualized gross margin headwind compared to 150 basis points during first-quarter results.

While wholesale growth slowed to 23%, Raymond James noted this was intentional and reflected launch timing, adding that the wholesale channel remains a long-term growth opportunity as On Holding is only penetrated in 40-50% of doors across retailers like Dick’s Sporting Goods, Foot Locker, and JD Sports. The company’s five-year revenue CAGR of 54% and strong current ratio of 2.8 support its expansion potential.

In other recent news, On Holding AG reported a notable 38% increase in currency-adjusted revenue for the second quarter of 2025, along with improvements in both gross and EBITDA margins. This strong performance led several analyst firms to reiterate their positive outlook on the company. BTIG maintained its Buy rating and $70 price target, citing the company’s ability to exceed expectations despite challenges such as tariffs and foreign exchange issues. Similarly, Williams Trading raised its price target to $70 from $63, while UBS reiterated its Buy rating with a $75 price target, highlighting solid revenue trends.

Conversely, Jefferies downgraded On Holding to Underperform, reducing the price target to $40, due to concerns about future growth rates and potential shifts in retailer orders back to competitors like Nike. Truist Securities also reiterated its Buy rating and set a price target of $69, pointing to the company’s strong quarterly results that surpassed expectations across multiple metrics. These developments reflect a mix of optimism and caution among analysts regarding On Holding’s future performance.

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