On Holding AG: Strong Performance and Growth Potential Justify Buy Rating

Morgan Stanley analyst Alexandra Straton maintained a Buy rating on On Holding AG (ONON – Research Report) today and set a price target of $62.00.

Alexandra Straton has given her Buy rating due to a combination of factors that highlight On Holding AG’s strong performance and potential for future growth. The company reported an impressive first-quarter earnings result, with a significant EBITDA beat driven by robust sales, surpassing both market consensus and buyside expectations. This performance was marked by a 43% year-over-year revenue growth, showcasing strength across various regions and channels.
Moreover, On Holding AG’s ability to raise its full-year constant currency growth guidance, despite a challenging macroeconomic environment, underscores its resilience and strong market positioning. The company’s tariff resilience, evidenced by only a slight impact on gross margin and profitability guidance, further supports this positive outlook. Additionally, On Holding AG’s advantageous position in the sportswear market, along with effective brand management, contributes to the confidence in its continued outperformance and potential for positive sales revisions.

According to TipRanks, Straton is a 4-star analyst with an average return of 8.8% and a 66.67% success rate. Straton covers the Consumer Cyclical sector, focusing on stocks such as On Holding AG, Lululemon Athletica, and Ross Stores.

In another report released today, KeyBanc also maintained a Buy rating on the stock with a $68.00 price target.