UBS analyst Jay Sole has reiterated their bullish stance on ONON stock, giving a Buy rating today.
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Jay Sole’s rating is based on On Holding AG’s robust growth trajectory and strategic focus on innovation and premium branding. The company is expected to deliver impressive sales and earnings growth, with projected compound annual growth rates for sales, adjusted EBITDA, and EPS over the next five years. This positions On as one of the fastest-growing brands in the athletic wear sector, which is anticipated to positively impact its market valuation.
Furthermore, Jay Sole believes that the market underestimates On’s potential to expand beyond its current image as a running shoe brand. The recent quarterly report exceeded expectations in sales, gross margin, and adjusted EBITDA, reinforcing confidence in the company’s future performance. Additionally, the potential for share buybacks and structural improvements in gross margins are seen as positive indicators for future growth, justifying the Buy rating and an increased price target.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $63.00 price target.