Citi analyst Yawen Gao reiterated a Buy rating and $55.00 price target on On Holding AG (NYSE: ONON).

The analyst noted that On Holding management's fiscal 2029 outlook of high-teens sales compound annual growth rate is above market expectations of mid-teens growth. Gao cited the company's planned expansion into categories such as golf and football, along with targets of 65% or higher gross margin and 22% or higher EBITDA margin.

Gao acknowledged that near-term pressures in the athletic sector have led to reduced fiscal 2026 wholesale sell-in but described this as a temporary dynamic.