Needham on On Holding AG (ONON): 'Still Running Strong, We'd Be Buyers On Today's Unjustified Selloff'

Needham analyst Tom Nikic reiterated a Buy rating and $52.00 price target on On Holding AG (NYSE: ONON).

The analyst comments "Despite a strong Q4, ONON shares are down 11% as of this writing (vs. SPX -2%), which we view as a buying opportunity. ONON has been one of the most consistent beat-and-raisers in our coverage, and we think it's clear that brand momentum and full-price sell-through rates remain strong. The only potential hole to poke might be the FY26 margin guide (adjusted EBITDA flattish vs. FY25), but given that they're planning gross margin up despite tariff headwinds (still embedding a 20% tariff) and they handily beat the initial margin outlook last year (18.8% vs. initial guide 17.0%-17.5%), we are not concerned. Our FY26/27 EPS forecasts move up to 1.13/1.42 CHF (from 1.07/1.33 CHF prior). In Q4, revenue growth of 31% constant-FX was above mid-20's guidance, and adjusted EBITDA of 131 million CHF was above guidance of ~100 million CHF."

For an analyst ratings summary and ratings history on On Holding AG click here. For more ratings news on On Holding AG click here.

Shares of On Holding AG closed at $46.76 yesterday.

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