On Holding AG, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Jay Sole from UBS reiterated a Buy rating on the stock and has a $79.00 price target.
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Jay Sole has given his Buy rating due to a combination of factors that highlight On Holding AG’s potential for growth in the US wholesale channel. Sole believes that the market underestimates On’s ability to enhance productivity within its existing retail doors, rather than solely relying on opening new ones. This perspective is supported by a projected 18% annual growth rate in the Americas wholesale channel over the next five years, which could exceed market expectations.
Another reason for the Buy rating is On’s current share of shelf space in key retail stores, which stands at just 11%. This indicates significant room for expansion, especially as On’s brand awareness increases. The company’s diverse product offerings across various categories such as running, tennis, and lifestyle further bolster its growth prospects. As On continues to gain recognition and expand its shelf presence, its sales are expected to rise, supporting the optimistic outlook on its stock.
Sole covers the Consumer Cyclical sector, focusing on stocks such as On Holding AG, Deckers Outdoor, and Macy’s. According to TipRanks, Sole has an average return of 5.7% and a 50.31% success rate on recommended stocks.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $62.00 price target.