BTIG Reiterates Neutral Rating on On Holding AG (ONON)
BTIG analyst Janine Stichter reiterated a Neutral rating on On Holding AG (NYSE: ONON).
The analyst comments "Q2 offered puts and takes for investors to digest, with a revenue and Adj. EBITDA beat, but slower DTC performance (which contributed to a slight GM miss). Underlying guidance was reiterated, but rev was lowered due to FX. Warehouse disruptions and out-of-stocks have constrained growth in the DTC business, and investors should find comfort that while these challenges will persist to some extent into H2, DTC growth reaccelerated in June into Q3 as inv. availability improved, with the momentum expected to continue. Wholesale sell-through remains strong and product innovation efforts, combined with strategic product segmentation, appear to be driving greater traction in performance running. However, we note an acceleration in H2 sales/margins are embedded in guidance (esp. Q4) and warehouse disruptions make discerning underlying demand a bit more challenging. Given a premium valuation, we remain comfortable with our Neutral rating."
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Shares of On Holding AG closed at $39.55 yesterday.