On Holding AG, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst John Kernan from TD Cowen maintained a Buy rating on the stock and has a $55.00 price target.
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John Kernan’s rating is based on several compelling factors. Firstly, On Holding AG’s premium market positioning provides a significant competitive edge, allowing it to command a higher valuation compared to its peers in the footwear sector. Despite the intense competitive environment, the company’s ability to potentially increase its adjusted EBITDA margin guidance from 17% to 17.5% underlines its operational efficiency and growth potential.
Additionally, the brand’s popularity is on the rise, particularly among high-income women, as evidenced by a 205% year-over-year increase in running sneaker preference. While digital engagement has decelerated, On Holding AG’s unique visits and search interest still show positive growth. Moreover, the company’s expansion in the Americas, EMEA, and APAC regions, along with successful new store openings, supports its robust growth outlook. These factors collectively justify the Buy rating, despite a lowered price target due to sector valuation adjustments.
According to TipRanks, Kernan is a 5-star analyst with an average return of 9.4% and a 53.61% success rate. Kernan covers the Consumer Cyclical sector, focusing on stocks such as Ralph Lauren, Ross Stores, and TJX Companies.
In another report released on October 6, Bank of America Securities also reiterated a Buy rating on the stock with a $62.00 price target.