Analyst John Kernan of TD Cowen maintained a Buy rating on On Holding AG (ONON – Research Report), boosting the price target to $58.00.
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John Kernan has given his Buy rating due to a combination of factors including On Holding AG’s conservative sales guidance for FY25, which suggests potential for upward revisions. The company’s strong innovation and franchise management position it as a leader in its sector, and there is an expectation of significant sales growth driven by strong demand for its products, such as the Cloud 6, and favorable foreign exchange conditions.
Additionally, Kernan notes the company’s robust performance in key markets like North America, EMEA, and APAC, with particularly impressive growth anticipated in the APAC region. Despite potential challenges such as tariffs on Vietnam, On Holding AG’s pricing power and adaptability are seen as strengths that can mitigate these risks. The company’s projected EBITDA margin expansion further supports the positive outlook, contributing to the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $52.00 price target.