In a report released today, Sam Poser from Williams Trading maintained a Buy rating on On Holding AG (ONON – Research Report), with a price target of $60.00.
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Sam Poser has given his Buy rating due to a combination of factors that highlight On Holding AG’s strategic brand management and strong market positioning. The company is making deliberate decisions to prioritize long-term brand health, which includes managing its brand positioning, sell-through rates, and consumer demand effectively. This approach is evident in their selective expansion strategy, focusing on enhancing product assortments within existing channels rather than aggressively increasing distribution points.
Furthermore, On Holding AG’s ability to make tough decisions, such as saying no to certain prospective customers and adjusting product offerings based on retailer type, demonstrates a commitment to maintaining brand integrity. Despite some short-term dissatisfaction among retailers, these strategic moves are expected to strengthen the brand’s competitive edge and drive sustainable growth. Additionally, On Holding AG is on track to achieve record high gross margins, surpassing future targets ahead of schedule, which further supports the positive outlook and Buy rating.
According to TipRanks, Poser is a 5-star analyst with an average return of 15.6% and a 51.52% success rate. Poser covers the Consumer Cyclical sector, focusing on stocks such as Nike, Skechers USA, and Birkenstock Holding plc.
In another report released today, Telsey Advisory also maintained a Buy rating on the stock with a $67.00 price target.