On Holding initiated with a Hold at Jefferies

Jefferies analyst Randal Konik initiated coverage of On Holding (ONON) with a Hold rating and $44 price target The company’s share gains have driven “robust growth” with its footwear share now at 2%, the analyst tells investors in a research note. However, Jefferies says On’s growth is slowing to half of its prior over 50% rate as retailers committing to more Nike (NKE) product “presents novel pressure.” Further, On’s apparel and accessories impact is “minimal at best,” contends the firm. With continued normalization of footwear growth, limited non-footwear catalysts, and an “already industry leading valuation,” Jefferies views On shares as fairly priced.