Jefferies Cautious on On Holding AG (ONON): 'Buying Growth Today Caps Margins Tomorrow'

Jefferies analyst Randal Konik reiterated an Underperform rating and $20.00 price target on On Holding AG (NYSE: ONON).

The analyst comments "Buying Growth Today Caps Margins Tomorrow. Marketing rose to 14% of sales in '26 (12% LY), selling expense hit 9.5%, and the 2Q inventory-sales spread hit +1,774bps, the largest ever. Layer in new-store fixed costs from the retail buildout outlined at Analyst Day, an Americas biz we see going negative in '27, and a rising cost to acquire each engaged visitor, and SG&A deleverage plus markdown risk remain our base case for '26-'27. With the top-line guide already cut and the margin algo rolling over, On is buying growth today at a cost that structurally caps margins tomorrow. We see negative estimate revisions ahead. "

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 $35.41 yesterday.

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