Analyst Jay Sole from UBS maintained a Buy rating on On Holding AG and keeping the price target at $79.00.
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Jay Sole has given his Buy rating due to a combination of factors that highlight On Holding AG’s potential for significant growth and market expansion. Sole emphasizes the company’s strong focus on innovation and performance, which is expected to drive industry-leading sales growth and margin expansion. The market currently views On primarily as a running shoe brand, but Sole believes the brand has the potential to tap into a much larger market. This potential, coupled with the expectation of beat and raise earnings reports, supports the Buy rating.
Additionally, Sole points out that On Holding AG’s strategic initiatives, such as expanding in the Asia-Pacific region, opening company-owned stores, and growing its apparel business, are contributing to robust growth. The company is also poised for further expansion in the US market, where it is extending its brand beyond running into other categories like tennis and outdoor activities. Despite some market skepticism, Sole is confident in On’s ability to maintain high growth rates and believes the company’s managed growth strategy is prudent, reinforcing his conviction in the Buy rating.
Sole covers the Consumer Cyclical sector, focusing on stocks such as Macy’s, American Eagle, and Deckers Outdoor. According to TipRanks, Sole has an average return of 6.5% and a 52.46% success rate on recommended stocks.