BTIG on On Holding AG (ONON): 'Large Cap Top Pick'

BTIG analyst Janine Stichter reiterated a Buy rating and $60.00 price target on On Holding AG (NYSE: ONON).

The analyst comments "On hosted its first investor day since 2023, highlighting both opportunities to grow within its core, and also enter new categories, including football (note here) and golf, all while maintaining its premium positioning and related margin strength. We believe the high-teens growth target was likely slightly better than the market was anticipating, and importantly, includes a minimal contribution from new sports. The low-20s Adj. EBITDA margin/65%+ GM underscore management's commitment to its premium brand positioning, while still embedding the necessary investment to support growth initiatives. The $1B share repo (through '29) reflects the strong cash position and future FCF generation. Near-term, management acknowledged the promotional environment, but pointed to their ability to stay largely above the fray. We expect headwinds to be most pronounced in Q3 and abate in '27, where On should benefit from a major innovation year as it relaunches its key running franchises with new Surreal superfoam combined with Cloudtec, all supported by a more clearly defined marketing and product architecture. Despite the positive move today, we believe valuation continues to reflect concerns over top-line and margin durability amid a competitive segment, and see upside from both multiple re-expansion and estimates moving higher over time. We adjust our estimates modestly to account for the Q3 update with slight tweaks to complexion in '27. We do not assume any buybacks in our estimates. We reiterate our Buy rating, Large Cap Top Pick, and $60 PT."

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 $29.39 yesterday.

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