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Monday saw UBS analyst Jay Sole adjust the price target for On Holding AG (NYSE:ONON) shares, reducing it to $65.00 from the previous $67.00, while continuing to endorse the stock with a Buy rating. The Swiss athletic wear company, currently valued at $16.66 billion, has maintained strong momentum throughout the Holiday season. InvestingPro data shows impressive revenue growth of 26.12% and industry-leading gross margins of 60.18%. The expectation is that On Holding will report a 5 cents earnings per share (EPS), supported by stronger sales and margins.
Sole anticipates that On Holding’s full-year 2025 guidance will project at least a 26% year-over-year growth in sales, excluding foreign exchange impacts. This forecast, according to Sole, is likely to enhance investor sentiment towards the company. The options market has factored in an approximate 8.9% fluctuation in the stock’s price in response to the upcoming earnings event, which is slightly below the historical average movement of 10.7%. Sole agrees with the options market’s perspective regarding the potential stock price movement.
The analyst’s commentary highlights the performance of On Holding’s brand during a key retail period, suggesting that the company is positioned to outperform in both the top line and margins. The anticipated guidance for the upcoming fiscal year appears to be a critical factor in maintaining a positive outlook on the stock.
The reduction in the price target comes amidst these positive expectations, indicating a nuanced view of the company’s valuation. While the target has been lowered, the Buy rating remains in place, signaling confidence in the company’s continued growth trajectory.
Investors and market watchers will be looking closely at On Holding’s upcoming earnings release to see if the company meets or exceeds the outlined expectations. The options market’s pricing suggests that significant stock price movement could occur around this event, reflecting the importance of the forthcoming financial results to On Holding’s market valuation. Based on InvestingPro’s Fair Value analysis, the stock currently appears overvalued, though detailed valuation metrics and comprehensive research reports are available exclusively to subscribers.
In other recent news, On Holding AG has seen a flurry of activity from analysts regarding its stock ratings and price targets. Truist Securities has maintained its Buy rating and $61 price target for On Holding AG, attributing recent stock declines to misinterpretations of sales data but expressing confidence in the company’s consumer demand. KeyBanc Capital Markets raised its price target to $68, maintaining an Overweight rating, citing strong brand momentum and innovation as key drivers for future growth. Meanwhile, Citi reiterated a Neutral rating with a $65 price target, highlighting the company’s strong positioning in the footwear market and positive management insights from a recent conference.
Stifel analysts also reaffirmed a Buy rating with a $66 price target, noting sustained momentum through the holiday season and a significant increase in brand recognition in the U.S. market. They emphasized the company’s potential to achieve ambitious revenue and EBITDA targets by 2026. Additionally, TD Cowen upgraded its price target to $66, maintaining a Buy rating based on a proprietary survey showing increased brand preference for On Holding AG. The firm is optimistic about the company’s potential for strong earnings per share growth in the upcoming fiscal year.
These developments reflect a mix of optimism and caution among analysts, with several firms maintaining or upgrading their ratings based on On Holding AG’s brand strength, market positioning, and growth prospects. Investors are likely to monitor these analyses closely as they consider their positions in On Holding AG.
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