On Holding AG, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Thierry Cota CFA from Bank of America Securities reiterated a Buy rating on the stock and has a $62.00 price target.
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Thierry Cota CFA’s rating is based on On Holding AG’s strong performance and growth prospects across various regions. The company is expected to maintain robust organic sales growth, particularly in the Americas, Europe, and APAC regions, despite potential challenges such as supply chain issues and US tariffs. This growth trajectory is supported by On’s unique brand positioning and potential market expansion opportunities.
In the medium to long term, while there are concerns about competitive pressures from Nike’s relaunch, On Holding AG’s low market share in the US and its potential to increase its presence in major retail outlets provide room for growth. The company’s strategy of channel and geographic diversification is expected to drive significant sales growth in the coming years. Despite the risks associated with product diversification and competitive pressures, On’s strong brand traction and strategic investments underpin the Buy rating, with a price objective of $62.
In another report released on October 2, Morgan Stanley also maintained a Buy rating on the stock with a $65.00 price target.