On Holding's Growth Soars: Analysts See Strong Upside Amid New Initiatives Beyond Footwear, Star-Studded Marketing

On Holding AG ONON shares traded higher on Wednesday. Multiple firms raised their respective price forecasts for the stock.

• Telsey Advisory Group analyst Cristina Fernández reiterated the Outperform rating on On Holding, with a price forecast of $67.
• Needham analyst Tom Nikic maintained the Buy rating on the stock, with a price forecast of $64.
• Raymond James analyst Rick B. Patel reiterated the Strong Buy rating on the company, with a price forecast of $68.

Telsey Advisory Group: The analyst expresses confidence in On’s ability to meet or surpass its 2025 guidance, citing its manufacturing base in Vietnam and minimal exposure to Chinese import tariffs.

Per Fernández, On is on track to meet its 2026 financial targets, with apparel growth showing positive momentum due to new retail stores and marketing campaigns featuring Zendaya and FKA Twigs.

The analyst stresses that On can continue its brand momentum in 2025 through key initiatives, including product launches, new store openings, wholesale growth, increased apparel penetration, and ongoing marketing campaigns.

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Needham: The analyst highlights that On has gained significant popularity among Gen Z consumers, with a notable increase in product sales to those under 35, likely driven by high-profile collaborations with Zendaya and FKA Twigs.

Per Nikic, the company has a continued runway for strong growth, as they grow brand awareness and gain shelf space with the largest and best sneaker retailers in the world.

Raymond James: Patel notes that On is improving its e-commerce apparel presentation and integrating apparel with brand ambassadors to boost growth, positioning itself as a lifestyle brand, not just a footwear one.

The analyst updated the 2025/2026 estimates based on fourth-quarter earnings and the new guidance.

Revenue is projected to grow by 29% in 2025 and 22% in 2026. EBITDA margin is expected to be 17.4% in 2025 and 18.1% in 2026. Previously, the estimates were 29%/22% for revenue and 17.1%/17.4% for EBITDA margin.

Price Action: ONON shares are trading higher by 5.25% to $53.29 at last check Wednesday.

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