UBS analyst Jay Sole reiterated a Buy rating on On Holding AG today and set a price target of $85.00.
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Jay Sole has given his Buy rating due to a combination of factors that point to sustained, above-industry growth for On Holding AG. He expects the company’s focus on product innovation, performance credibility, athlete partnerships, direct-to-consumer distribution, and a disciplined premium pricing strategy to translate into some of the strongest revenue and profit expansion in the global athletic wear space. His projections for multi-year compound growth in sales, EBITDA, and EPS imply that On can become one of the fastest-growing brands in the category, which he believes is not fully reflected in the current valuation and could drive a re-rating of the stock’s earnings multiple.
In addition, Sole highlights proprietary survey work showing that On’s global brand awareness, while still relatively low versus major incumbents, is rising steadily, giving the company substantial runway for further penetration and market share gains. He notes that purchase intent for both On footwear and apparel has increased sharply year over year, and that the brand’s Net Promoter Score is improving and ranks among the higher scores in the industry, indicating strong customer advocacy and repeat-purchase potential. The survey also suggests that more consumers now associate On with high product quality and prestige, supporting the thesis that it is successfully evolving into a leading premium sportswear brand. Together, these demand, brand, and financial drivers underpin his conviction that ONON shares offer attractive upside, justifying a Buy recommendation.
According to TipRanks, Sole is a 4-star analyst with an average return of 4.8% and a 50.91% success rate. Sole covers the Consumer Cyclical sector, focusing on stocks such as Nike, Macy’s, and On Holding AG.
In another report released on December 18, Bernstein also maintained a Buy rating on the stock with a $70.00 price target.