William Blair starts On Holding with Outperform on ‘compelling setup’

William Blair initiated coverage of On Holding with an Outperform rating. The analyst believes the company has one of the better approaches to brand protection and product innovation across the wider landscape of emerging athletic brands, setting up longer-term market share capture. By maintaining premium positioning of the brand and extending reach through new categories and channels, On has a path to three-year revenue growth above 25%, the analyst tells investors in a research note. Further, the company’s mix shirt to direct-to-consumer and apparel with greater leverage at scale suggests improving margins and earnings growth over 30%. Blair believes this creates a “compelling setup” with the shares trading at 19-times its 2025 adjusted EBITDA estimate.