On Holding AG: Strong Growth Momentum and Raised Price Target Amid Optimistic Forecast

Tom Nikic, an analyst from Needham, maintained the Buy rating on On Holding AG (ONON – Research Report). The associated price target was raised to $62.00.

Tom Nikic has given his Buy rating due to a combination of factors including the strong momentum On Holding AG is experiencing. Despite the high valuation, the company is expected to continue its upward trajectory as it maintains robust growth and improves its financial metrics.
Additionally, the optimistic ‘reverse hockey stick’ forecast for the year suggests potential for exceeding guidance, with projected revenue growth in the range of 25% for the latter quarters compared to a 40% increase in Q1. The company’s impressive quarterly performance, with revenues surpassing expectations and adjusted EBITDA exceeding market estimates, further supports this positive outlook. Consequently, the price target has been raised to $62, reflecting confidence in the company’s future performance.