UBS analyst Jay Sole reiterated a Buy rating and $85.00 price target on On Holding AG (NYSE: ONON).

The analyst commented, "We think On's continued focus on innovation, performance, athletes, sports, and direct-to-consumer selling, while maintaining a premium brand position will lead to industry-leading sales growth and earnings beats. ONON’s +26% y/y ex-FX sales growth and exceptionally strong margin results in 1Q reinforce our conviction in this view. We forecast On delivering 18%, 20%, and 29% 5-yr. sales, adjusted EBITDA, EPS CAGRs, respectively, and expect strong growth to continue from there. Our view is this type of growth outlook justifies a 33x FY2 P/E vs. just ~16x today. We think ONON’s growth and margin expansion will positively surprise the market and boost the stock’s P/E. On’s brand is gaining heat with younger consumers. Mgmt. highlighted, in 1Q, the share of 18-24 year olds significantly grew within the company’s DTC customer base. We believe On’s expanding reach with this younger demographic is an underappreciated LT growth driver."

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Shares of On Holding AG closed at $33.83 yesterday.