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Wednesday, shares of On Holding AG (NYSE: ONON) soared, closing the trading day up approximately 10%, significantly outpacing the S&P 500’s modest 0.5% gain. This leap followed the announcement from Truist Securities that analyst Joseph Civello increased the price target on the company’s stock to $69.00, up from the previous target of $61.00, while reiterating a Buy rating.
The upward revision reflects the analyst’s optimism about ONON’s growth trajectory and the brand’s strong performance. Civello highlighted the company’s continued momentum, noting that ONON’s growth profile stands out in the footwear and apparel industry. Despite the uncertain macroeconomic environment, demand for ONON’s products has remained strong across various regions, sales channels, and product categories.
Civello’s commentary underscores the resilience of ONON’s brand, which has been able to maintain robust demand due to its distinctive market position and premium product offerings. The company’s impressive 60.62% gross profit margin demonstrates its pricing power and operational efficiency. These factors, according to the analyst, provide the company with additional flexibility to manage potential price increases if tariff concerns heighten.
The analyst’s outlook for ONON is not only based on current performance but also on the company’s potential for continued growth and margin expansion. Civello believes that the depth and breadth of ONON’s opportunities position it to outperform within a wide range of economic conditions. The new price target of $69 reflects this confidence and anticipates further success for the company. For deeper insights into ONON’s valuation and growth prospects, including 18 additional ProTips and comprehensive financial analysis, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, On Holding AG has been the subject of several positive analyst updates following its strong financial performance. The company reported robust revenue growth in the first quarter, surpassing estimates and prompting an upward revision of its revenue guidance. BofA Securities raised its price target for On Holding to $75, maintaining a Buy rating, citing stronger-than-anticipated organic sales growth. Evercore ISI also increased its price target to $70, highlighting the company’s exceptional first-quarter performance and increased revenue growth projection.
Similarly, BTIG adjusted its price target to $70, maintaining a Buy rating, and noted the company’s impressive 40% constant currency growth in Q1. KeyBanc Capital Markets raised its price target from $60 to $68, citing heightened brand awareness and successful positioning as a premium product. Bernstein maintained a $70 price target, emphasizing On Holding’s strong brand momentum and revenue growth across all regions. The consistent optimism from analysts reflects confidence in On Holding’s strategic initiatives and its ability to perform well despite economic challenges.
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