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On Thursday, Piper Sandler reaffirmed its Overweight rating on On Holding AG (NYSE: ONON) shares, maintaining a $62.00 price target. The endorsement comes after a series of investor meetings with ONON’s top management, including Co-Founder & Co-Chairman David Allemann, Co-CEO & CFO Martin Hoffmann, Deputy CFO Florian Maag, and Jerrit Peter from Investor Relations.
The company’s performance has been notable for its consistency, with year-to-date trends mirroring those seen in the second half of 2024, both in terms of sell-in and sell-through, as well as in its direct-to-consumer (DTC) operations. With revenue growth of 29% and industry-leading gross margins of 61%, ONON’s financial health is rated as "GREAT" by InvestingPro, which has identified 14 additional key insights about the company. ONON’s management has not indicated any concerns regarding consumer volatility and projects a second half of 2025 that could potentially outperform expectations. Furthermore, the guidance provided for this period is seen as realistic, even if the macroeconomic environment were to worsen.
Piper Sandler’s analysis suggests that ONON’s premium market positioning significantly differentiates it from competitors like NIKE. Rather than competing directly, ONON is leveraging its unique portfolio approach, which has helped the company avoid demand dislocation even as it updates its Cloud franchise.
The research firm has delineated a potential stock value range for ONON, suggesting that in a bullish scenario, shares could reach as high as $75, while a bearish outlook would see them at a low of $42. This valuation spectrum reflects Piper Sandler’s view of the company’s current market dynamics and future prospects.
In other recent news, On Holding AG has reported a strong fourth-quarter performance, surpassing its medium-term financial objectives set during the 2023 Investor Day. The company’s earnings per share (EPS) in the fourth quarter were CHF 0.23, with an adjusted EPS of $0.33, exceeding consensus estimates. UBS has raised its price target for On Holding to $73, maintaining a Buy rating, citing the company’s innovation and direct-to-consumer strategies as growth drivers. Similarly, Bernstein has kept an Outperform rating with a $70 target, highlighting the company’s robust start to 2025 and potential for exceeding sales expectations later in the year.
TD Cowen, while maintaining a Buy rating, adjusted its price target slightly down to $64, acknowledging On Holding’s strong regional growth and improved margins. KeyBanc also reaffirmed its positive outlook with a $68 target, noting the company’s successful execution and brand recognition. Barclays (LON:BARC) increased its target to $64, retaining an Overweight rating, and emphasized the company’s financial projections for the coming years.
These developments reflect a mix of optimism and caution among analysts, with On Holding’s strategic initiatives and financial guidance being key factors in their assessments. The company’s focus on premium innovation and franchise management continues to attract a growing consumer base, contributing to its positive market outlook.
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