On Holding downgraded to Underperform from Hold at Jefferies

Jefferies analyst Randal Konik downgraded On Holding (ONON) to Underperform from Hold with a price target of $40, down from $50. The firm believes 2025 will represent the company’s peak sales growth rate. Going forward, On’s U.S. door count expansion will slow and sell-in moderates in 2026 as retailer orders flow back to Nike (NKE), the analyst tells investors in a research note. Jefferies also believes the company’s high pricing and “narrow” product assortment limit its total addressable market. It sees On’s valuation moderating as its growth slows.