On Holding initiated with a Buy at Needham

Needham initiated coverage of On Holding with a Buy rating and $40 price target. As a premium, “disruptive brand that is still in the early innings” of its growth lifecycle with secular tailwinds of health and wellness, On is one of the fastest growth stories in consumer, the analyst tells investors in a research note. The firm thinks the company’s EBITDA margin has upside towards the high teens and views the October 4 analyst day in Zurich as the next catalyst for the stock.