Analyst Thierry Cota CFA of Bank of America Securities reiterated a Buy rating on On Holding AG, retaining the 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 growth potential and strategic advantages. The company has upgraded its full-year organic sales growth (OSG) guidance, expecting significant growth in the second half of the year, supported by a price increase in the US and an acceleration in wholesale sales. This indicates a robust performance trajectory, with expectations of a 30% OSG in the latter half of the year.
Additionally, the company’s adjusted EBITDA margin is projected to be at the high end of guidance, driven by an improved gross margin and operational efficiencies. On Holding AG’s unique strategy of integrating upstream and downstream operations, along with its premium pricing model, positions it favorably in the market. The stock’s price-to-earnings ratio is also at a historic low compared to the sector, suggesting potential value for investors. These factors collectively support the Buy rating, with a price objective of $73.
According to TipRanks, Cota CFA is ranked #8507 out of 9896 analysts.
In another report released today, BTIG also reiterated a Buy rating on the stock with a $70.00 price target.