On Holding initiated with an Outperform at TD Cowen

TD Cowen analyst John Kernan initiated coverage of On Holding with an Outperform rating and $38 price target. Survey work on customer acquisition and the market share opportunity highlights On’s “long-tailed” growth opportunity, while consensus margin estimates look conservative through fiscal 2025 and guidance for the company’s outlook for fiscal 2023 is likely to be raised, the analyst tells investors in a research note. The firm says On’s growth, competitive advantages and return on invested capital profile supports a premium valuation. On is a “premium, disruptive brand with differentiated” technology, design with secular tailwinds of health and wellness, along with casualization trends in footwear and apparel, TD contends.