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Investing.com - Bernstein SocGen Group has reiterated an Outperform rating on On Holding AG (NYSE:ONON) with a price target of $70.00, according to a research note published Tuesday. The stock, currently trading at $49.81, has demonstrated strong financial health with a "GREAT" rating according to InvestingPro metrics.
The firm highlighted On Holding’s second-quarter performance, which featured a "solid beat on sales and margins" and a full-year guidance raise. The company’s impressive 61% gross profit margin and 35.7% year-over-year revenue growth support this strong performance. The Americas growth figure, described as "all-important," was in line with Street expectations, countering concerns of a potential miss.
Bernstein SocGen noted that early stock gains faded as strong performance was "clouded by investor concerns around a potential US slowdown," but the firm believes these concerns are "overdone" and that On is "well-positioned to weather macro headwinds" in the short term.
The research firm described On Holding as its "most compelling Sportswear growth story" for the long term, citing the company’s low market share across all markets, premium product positioning with strong full-price sell-through, and diversification that prevents overexposure to any single category, trend, or sport.
At 36 times next-twelve-months price-to-earnings ratio, down from over 50 times at the start of the year, Bernstein SocGen believes On Holding’s current valuation "underappreciates the strong multi-year earnings growth story" and sees clear margin improvement potential from "efficiencies, scale and DTC growth." For deeper insights into On Holding’s valuation and 12 additional ProTips, visit InvestingPro, where you’ll find comprehensive analysis in our exclusive Pro Research Report.
In other recent news, On Holding AG reported a strong second-quarter 2025 performance, exceeding expectations in both revenue and margins. The company saw a 38% currency-adjusted revenue increase, a 157 basis point improvement in gross margin, and a 220 basis point increase in EBITDA margin. Following these results, On Holding raised its full-year 2025 guidance, despite challenges from foreign exchange rates and tariffs. Raymond James reiterated its Outperform rating with a $66 price target, while BTIG and Williams Trading maintained their Buy ratings, with price targets of $70. Truist Securities also reiterated its Buy rating and set a price target of $69. However, Jefferies downgraded On Holding to Underperform, lowering its price target to $40, citing concerns about potential slowing sales growth in 2026. These recent developments highlight varying analyst perspectives on the company’s future prospects.
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