On Holding price target raised to $50 from $46 at Baird

Baird analyst Jonathan Komp raised the firm’s price target on On Holding to $50 from $46 and keeps an Outperform rating on the shares. The firm notes Q2 revenue and adjusted EBITDA topped consensus, reflecting stronger wholesale and profit flow-through, and On Holding confirmed direct-to-consumer has re-accelerated. While full year consensus EBITDA may not change materially, a strong pipeline of expected drivers slated for the second half of 2024 and 2025 reinforce Baird’s confidence in the outlook. Bigger picture, the firm says that On Holding’s innovation-led culture is supporting visibility to industry leading growth and in its view justifies premium valuation, especially in an uncertain environment. Baird is a buyer post-Q2 update.