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Investing.com - UBS has reiterated its Buy rating on On Holding AG (NYSE:ONON) with a price target of $75.00, citing solid second-quarter 2025 revenue trends based on the firm’s market checks. The premium footwear company, currently valued at $15.3 billion, has maintained impressive gross profit margins of 60.6% according to InvestingPro data.
UBS believes On Holding will likely raise its fiscal year 2025 currency-neutral sales growth outlook from the current "at least 28%" to a level modestly above market expectations, which could help the stock’s price-to-earnings ratio move back toward its historical average.
The athletic footwear company currently trades at approximately 31 times its fiscal 2026 earnings, according to UBS’s analysis.
While UBS notes that higher tariff rates will likely put 50-100 basis points of pressure on On Holding’s fiscal year 2025 EBITDA margin outlook, the firm expects investors to focus more on the company’s strong revenue trends rather than the tariff impact.
The options market is currently pricing in a potential share price movement of plus or minus 8.3% around On Holding’s upcoming earnings announcement, which is slightly less than the historical average move of 10.4% for the stock.
In other recent news, On Holding AG reported significant developments impacting its business. The company’s earnings estimates have been adjusted by analysts at TD Cowen, who lowered the price target from $63 to $60 due to concerns over foreign exchange impacts and tariff uncertainties. Raymond (NSE:RYMD) James also downgraded On Holding from Strong Buy to Outperform, maintaining a $66 price target, citing the strengthening Swiss Franc and updated tariff assumptions as influential factors. Piper Sandler reiterated its Overweight rating with a $65 price target, despite noting a recent underperformance in On Holding shares compared to its coverage universe. Additionally, On Holding expanded its Board of Directors by appointing Helena Helmersson, a former CEO of H&M Group, as an independent member. Her extensive experience in retail and sustainability is expected to support On Holding’s strategic growth initiatives. These developments reflect ongoing challenges and strategic shifts within the company.
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