On Holding price target raised to $40 from $35 at Morgan Stanley

Morgan Stanley raised the firm’s price target on On Holding to $40 from $35 and keeps an Overweight rating on the shares. A Q1 beat and fiscal year guidance raise were “well-anticipated,” so the outsized relative stock reaction “appears to mostly be a squeeze,” the analyst tells investors. The firm adds that it continues to see room for sales and profitability upside throughout the year.