On Holding Has Meaningful Growth Opportunities, Says Bullish Analyst

On Holding AG ONON was among the two growth stocks named by Jim Cramer in the athletic apparel industry.

The Switzerland-based company’s growth is poised to accelerate. Its marketing will also pick up as the Olympics begin, according to Truist Securities.

The On Holding Analyst: Joseph Civello upgraded the rating for On Holding from Hold to Buy, while raising the price target from $34 to $46.

The On Holding Thesis: Trends for the company have remained strong, "despite some broader discretionary pressure," Civello said in the upgrade note.

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The company's momentum "continues to build," he analyst stated. “It seems well positioned to gain market share as Nike Inc NKE pulls back “on fan-favorites as part of its franchise lifecycle management strategy.”

Trends are favoring tennis attire and On Holding's "growing slate of fashion-forward collabs should provide big opportunities for its growing apparel business," Civello wrote. "Recent wholesale demand trends look very bullish and sentiment around growth in the channel is very positive," he added.

ONON Price Action: Shares of On Holding had risen by 1.74% to $40.92 at the time of publication on Tuesday.

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