William Blair analyst Dylan Carden has maintained their bullish stance on ONON stock, giving a Buy rating yesterday.
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Dylan Carden has given his Buy rating due to a combination of factors that highlight On Holding AG’s strong performance and promising outlook. The company reported significant growth in its direct-to-consumer channel, with sales increasing by 47%, and a notable 23% growth in wholesale, leading to an overall sales growth of 32% for the quarter. This performance exceeded market expectations, which had anticipated a 24% growth, showcasing the brand’s momentum.
Moreover, On Holding AG demonstrated impressive financial metrics, such as an increase in gross margins and a 50% year-over-year growth in adjusted EBITDA, which was 19% above expectations. The management’s decision to raise the full-year sales forecast by CHF 50 million to CHF 2.91 billion, along with an improved gross margin outlook, further supports the positive sentiment. Despite some currency-related challenges and uncertainties in the latter half of the year, the company’s robust performance and strategic adjustments provide a solid basis for the Buy rating.
In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $65.00 price target.