In a report released today, Thierry Cota CFA from Bank of America Securities maintained a Buy rating on On Holding AG (ONON – Research Report), with a price target of $73.00.
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Thierry Cota CFA has given his Buy rating due to a combination of factors that highlight On Holding AG’s potential despite recent challenges. The stock has faced pressures due to weaker than expected sales from a competitor, Hoka, and increased competition in the running category. However, On’s business model, with its proactive spending and growth-supportive approach, distinguishes itself from its competitors and mitigates these concerns.
In addition, the company has a smaller scale compared to industry giants like Nike and Adidas, but this positions On favorably for growth. The potential for expansion through new stores and wholesale accounts, particularly outside the US market and beyond the running segment, offers significant upside. On’s current market trends and strategic initiatives suggest it is less vulnerable to competitive pressures than its peers, and its ongoing growth cycle is likely to sustain its market momentum.
In another report released yesterday, Truist Financial also reiterated a Buy rating on the stock with a $61.00 price target.