On Holding AG (NYSE:ONON), which focuses on athletic wear, particularly shoes, got a nice boost after closing up 5.45% in Friday’s trading. This was largely thanks to a little support from UBS, who reiterated its Buy rating and made it clear why.
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UBS, via analyst Jay Sole, kept a price target of $42 per share on the stock. The reason? A meeting with management kept UBS’ rating high, noting that On Holding was now pretty much focused on exactly what it should be focused on. A focus on such things as innovation, athletes, and direct-to-consumer selling is likely to keep On Holding stock flying high. In fact, Sole noted that UBS looks for On Holding to deliver a compound annual growth rate (CAGR) of 44% in its earnings per share figures.
That’s staggering. But it gets better; already, American Century Companies has stepped up its ownership of On Holdings, now holding 870,178 shares. In something of a mixed blessing, however—depending on your feelings about Jim Cramer—Jim Cramer declared On Holding to be one of his favorite growth stocks around, looking for it to “explode to the mid-30s.”
Overall, On Holdings is considered a Moderate Buy, thanks to nine Buy ratings, one Hold, and two Sells. Further, On Holdings stock offers investors an upside potential of 11.16% thanks to its average price target of $33.66.
