On Holding AG (ONON) has received a new Buy rating, initiated by William Blair analyst, Dylan Carden.
Dylan Carden has given his Buy rating due to a combination of factors including On Holding AG’s strategic leadership transition and its ability to attract top talent. The company announced a shift to a single CEO structure, with Martin Hoffmann set to become the sole CEO, which is seen as a natural progression following Marc Maurer’s successful tenure. This transition is expected to be smooth due to the established team and culture at On Holding.
Additionally, the company has made significant leadership hires, including a chief people officer from Spotify and a chief innovation officer from Specialized and Dyson, which are expected to strengthen its strategic capabilities. Despite potential market skepticism due to Maurer’s departure amid a three-year plan, management’s confidence in achieving growth targets, including plans to triple the business, supports the positive outlook. These factors contribute to the Buy rating as they suggest a strong foundation for future growth and resilience in leadership.
Carden covers the Consumer Cyclical sector, focusing on stocks such as Abercrombie Fitch, Ross Stores, and JJill. According to TipRanks, Carden has an average return of 14.1% and a 50.85% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $66.00 price target.