Wedbush sees buying opportunity as On Holding shares pressured on strong EPS

Wedbush analyst Tom Nikic notes that On Holding reported strong Q2 results, with the company now expecting full year revenues to grow +44% vs. +42% prior, which implies growth in the 30% range in the second half of the year. Like with Q1 print, Wedbush notes that while On Holding put up a solid beat-and-raise, the stock is getting punished due to small holes to poke. Last time, cooler heads prevailed over time, and the stock gained back everything it lost from the Q1 print, and then some. Ultimately, the firm thinks the brand/business remain strong, numbers continue to move higher, and the second half of the year is guided prudently conservative. Wedbush could see the stock replicating its “grind higher intra-quarter” playbook from here, and views Tuesday’s selloff as a buying opportunity. The firm has an Outperform rating on the shares with a price target of $36.