William Blair analyst Dylan Carden has maintained their bullish stance on ONON stock, giving a Buy rating yesterday.
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Dylan Carden’s rating is based on a combination of factors that highlight On Holding AG’s strong market position and growth potential. Despite concerns about competition from Nike and the potential deceleration of On’s wholesale business, Carden believes these fears are overstated. He sees On as well-positioned to capture market share due to its ability to innovate and introduce new product iterations that maintain consumer interest beyond any single popular style.
Carden argues that On’s strategy mirrors that of Nike, but without the limitations of scale that Nike faces. He suggests that On has a decade-long opportunity for sustainable growth in the mid-teens to 20% range. The concerns about On following the same path as Deckers Brands’ Hoka are considered unfounded, as On’s growth trajectory and market strategy differ significantly. This presents a compelling opportunity for investors to buy On shares, anticipating continued growth and market expansion.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $55.00 price target.