John Kernan, an analyst from TD Cowen, maintained the Buy rating on On Holding AG. The associated price target was lowered to $60.00.
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John Kernan has given his Buy rating due to a combination of factors that suggest a positive outlook for On Holding AG. Despite some concerns from clients about the sustainability of ONON’s growth and foreign exchange impacts, Kernan believes that the company’s growth trajectory and EBITDA margin projections for the second half of the year will likely provide reassurance to investors. The company’s ability to innovate and maintain premium pricing, along with the introduction of new products like the Cloudsurfer Max and Cloudflow 5, supports a strong market position.
Additionally, On Holding AG’s e-commerce traffic has shown significant growth, and the company’s performance in North America and other regions is expected to remain robust. Kernan’s financial models predict higher-than-consensus revenue and earnings per share estimates, further justifying the Buy rating. The company’s appeal to high-income consumers, as highlighted in the TD Cowen Consumer Tracker survey, also contributes to the positive assessment. Overall, these factors combined with the company’s strategic initiatives underpin Kernan’s optimistic view on ONON’s stock.
In another report released on July 17, BTIG also maintained a Buy rating on the stock with a $70.00 price target.