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On Tuesday, Truist Securities confirmed its Buy rating and $61.00 price target for On Holding AG (NYSE: ONON) shares, adding to the broader analyst consensus that sees significant upside potential for the $14.2 billion market cap company. According to InvestingPro data, analyst price targets range from $44.06 to $73.57, reflecting strong confidence in the company’s prospects. This endorsement follows the company’s announcement regarding a shift in its executive leadership structure. On Holding AG will move forward with a single-CEO model, appointing Martin Hoffmann, the current Co-CEO and CFO, as the chief executive officer. Marc Maurer, who has been with the company for 12 years, will step down.
The change in leadership was discussed with the investor relations team, who clarified that Maurer’s departure was the result of a decision made last fall to seek new opportunities. According to them, this move does not indicate any negative impact on the company’s current performance or a response to recent macroeconomic pressures. This confidence is supported by On Holding’s impressive financial metrics, including a robust 60.6% gross profit margin and strong revenue growth of 29.4% over the last twelve months. The team also emphasized that On Holding AG’s brand momentum remains strong, echoing sentiments from their fourth-quarter earnings call on March 4, 2025.
During the earnings call, On Holding AG’s management had provided positive commentary about the brand’s trajectory. They also reassured stakeholders that the company is on track to meet the revenue and margin targets set for 2026. These goals were originally presented during their Analyst Day on October 4, 2023.
Investors and analysts have been closely monitoring On Holding AG’s progress, particularly as the company navigates through leadership changes and aims to achieve its long-term financial objectives. The confirmation of the $61.00 price target by Truist Securities signals continued confidence in the company’s strategy and market position.
The transition to a single-CEO structure is expected to take effect immediately, with Martin Hoffmann leading On Holding AG into its next phase of growth. The company, known for its performance footwear and sportswear, remains focused on innovation and market expansion as it works towards its 2026 goals. For deeper insights into On Holding’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 16 additional ProTips and detailed valuation metrics that help explain why analysts maintain their bullish outlook on the stock.
In other recent news, On Holding AG reported record net sales of over CHF 2.3 billion and a net income of CHF 242 million for fiscal year 2024, marking a period of substantial growth for the company. This financial success coincides with a significant leadership transition, as Martin Hoffmann will become the sole CEO, with Co-CEO Marc Maurer set to depart by mid-2025. Analysts have responded to these developments with varying perspectives. KeyBanc Capital Markets maintains an overweight rating, while Jefferies holds a more cautious stance with a hold rating, citing potential risks if future financial results do not meet expectations. HSBC has upgraded On Holding AG’s stock from Hold to Buy, increasing the price target to $58, reflecting a more optimistic outlook following the company’s robust performance in FY2024. Similarly, UBS has raised its price target to $73, maintaining a Buy rating, driven by On Holding’s commitment to innovation and direct-to-consumer strategies. Piper Sandler also supports an Overweight rating, noting the company’s premium market positioning and consistent performance. TD Cowen continues to endorse a Buy rating with a $64 price target, highlighting On Holding as their top pick for 2024, based on its growth strategy and potential for margin expansion. These recent developments reflect a mixed but generally positive sentiment among analysts regarding On Holding AG’s future prospects.
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