On Holding: Sustained Demand, Multi-Category Growth Strategy, and Margin Expansion Underscore Buy Rating Despite Valuation Risks

William Blair analyst Dylan Carden has maintained their bullish stance on ONON stock, giving a Buy rating today.

Dylan Carden has given his Buy rating due to a combination of factors, including evidence that demand trends remain robust despite market concerns about a potential slowdown and renewed competition from Nike. He argues that fears of an On “Hoka-like” deceleration are overstated, citing strong search interest, supportive transaction data, and indications that Nike’s recent recovery is largely confined to a narrower segment that represents only a small portion of On’s U.S. exposure.

Carden’s positive stance is also grounded in On’s multi-category product strategy and long-term growth runway, with management focused on broadening use-cases and entering additional sports to drive revenue toward CHF 10 billion. While acknowledging that the shares trade at elevated earnings multiples and that execution remains the primary risk, he believes the company’s shift toward higher-margin direct channels and disciplined growth should sustain high-teens to 20% top-line expansion and more than 20% earnings growth, leaving the stock undervalued relative to its structural potential.

According to TipRanks, Carden is a 4-star analyst with an average return of 9.2% and a 55.40% success rate. Carden covers the Consumer Cyclical sector, focusing on stocks such as Savers Value Village Inc., Revolve Group, and On Holding AG.

In another report released today, BTIG also reiterated a Buy rating on the stock with a $70.00 price target.