On Holding AG (ONON) has received a new Hold rating, initiated by Jefferies analyst, Randal Konik.
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Randal Konik has given his Hold rating due to a combination of factors impacting On Holding AG’s stock. The company has experienced significant growth in its footwear segment, achieving a 2% market share with a strong five-year compound annual growth rate. However, this growth is beginning to normalize, with recent sales figures showing a deceleration compared to previous years.
Additionally, On Holding AG faces increased competition as retailers are recommitting to larger brands like Nike, which could limit On’s market expansion opportunities. The company’s presence in the apparel and accessories market remains minimal, further constraining potential growth avenues. Despite a solid financial position with positive free cash flow and no debt, the stock’s valuation is already at the high end compared to its peers, leading to the conclusion that the shares are fairly priced at this time.