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On Wednesday, Truist Securities maintained its Buy rating and $61.00 price target for On Holding AG (NYSE:ONON) stock. The firm’s stance comes after a noticeable decline in the company’s shares, which have fallen approximately 16% since their peak on January 30, 2025, contrasting with the S&P 500’s relatively stable performance over the same period.
Truist Securities attributed the recent downward pressure on ONON’s stock to unfavorable comparisons with industry peers such as Deckers and Skechers, as well as concerns stemming from Bloomberg’s sales data, which suggested a potential miss in sales. However, Truist’s analysis, based on their proprietary card data, indicates that On Holding’s US Direct-to-Consumer business performed roughly in line with expectations for the fourth quarter of 2024. InvestingPro data reveals impressive gross margins of 60.2% and projected revenue growth of 29% for FY2024, suggesting strong underlying business fundamentals.
The firm’s analysts believe the market’s reaction is largely due to a misinterpretation of Bloomberg’s data analysis. Despite the recent decline, Truist Securities remains confident in the sustained consumer demand for On Holding AG’s offerings. The reiterated Buy rating and price target reflect the firm’s ongoing positive outlook for the company’s financial performance. According to InvestingPro, which offers 15+ additional investment insights for ONON, the company maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 2.91.
In other recent news, On Holding AG has been the subject of several analyst updates. KeyBanc Capital Markets raised its stock target for On Holding to $68, citing strong brand momentum and an optimistic outlook towards 2025. The firm also highlighted the company’s innovative product line and potential growth catalysts. In the meantime, Citi maintained a neutral rating on On Holding shares, pointing out the company’s strong positioning in the footwear market and its expected robust growth.
Stifel analysts reiterated a buy rating for On Holding, emphasizing the company’s brand recognition and potential to achieve its financial targets for fiscal year 2026. The firm also highlighted On Holding’s strategic category development and robust product cycle. On another note, TD Cowen upgraded On Holding’s stock target to $66, maintaining a buy rating based on a survey that indicated a growing preference for the brand.
Finally, BofA Securities reinstated coverage of On Holding with a buy rating and a price target of $73. The firm highlighted the company’s significant upside potential, superior pricing power, innovative initiatives, and expected market share expansion. These recent developments reflect a generally positive outlook from various analysts on the future performance of On Holding AG.
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