On Holding price target lowered to $42 from $45 at Evercore ISI

Evercore ISI lowered the firm’s price target on On Holding (ONON) to $42 from $45 and keeps an Outperform rating on the shares. The firm believes the company provided a mixed update. Evercore would expect buyside revenue estimates to be trimmed while EBITDA moves up on the higher profitability outlook. Further, the firm thinks the stock’s negativity today reflects some surprise that the first strategy update upon the founders’ return is to upgrade the margin outlook notably without a bigger revenue outlook. But at today’s valuation, Evercore still believes the stock is too cheap for a name that should grow revenues 20%-plus for the foreseeable future.