On Holding AG: Neutral Rating Due to Full Valuation Despite Brand Momentum

Richard Edwards, an analyst from Goldman Sachs, maintained the Hold rating on On Holding AG (ONON – Research Report). The associated price target remains the same with $57.00.

Richard Edwards’s rating is based on the current valuation of On Holding AG’s stock, which appears to be full despite the company’s strong brand momentum. While the brand continues to gain traction, as evidenced by high search interest and a leading Net Promoter Score, the stock’s valuation limits its potential for significant upside.
Additionally, recent US credit card data suggests that On’s growth in the direct-to-consumer channel may be trailing behind market expectations for the fourth quarter of 2024. Although this is specific to the US and is not expected to cause a miss in consensus expectations, similar situations have led to share price declines in other sportswear companies. Given these considerations, Edwards maintains a 12-month target price of $57 but adjusts the rating to Neutral, reflecting limited share price growth potential compared to other stocks under coverage.