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On Holding AG: Strong Brand and Growth Potential Justify Buy Rating Despite Minor Price Objective Adjustment

On Holding AG: Strong Brand and Growth Potential Justify Buy Rating Despite Minor Price Objective Adjustment

Bank of America Securities analyst Thierry Cota CFA reiterated a Buy rating on On Holding AG (ONONResearch Report) yesterday and set a price target of $73.00.

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Thierry Cota CFA has given his Buy rating due to a combination of factors that highlight On Holding AG’s strong performance and growth potential. The company is expected to continue its superior sales growth, with a projected organic sales growth of 32% in the second quarter, significantly outperforming the sector’s average. This growth is supported by the company’s strong brand traction and premium positioning, which enhance both volume and price-mix.
Furthermore, On Holding AG’s strategy of high operational expenditure and capital intensity is expected to boost long-term revenue and EBIT scale potential. Despite some challenges, such as higher non-cash financial charges and currency fluctuations, the company’s robust brand and strategic investments position it well for future growth. The price objective has been slightly lowered to $73 due to lower peer group multiples, but the overall outlook remains positive, warranting a Buy rating.

According to TipRanks, Cota CFA is an analyst with an average return of -8.9% and a 0.00% success rate.

In another report released on June 18, Morgan Stanley also maintained a Buy rating on the stock with a $62.00 price target.

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