On Holding Delivers Strong Holiday Performance, Remains A 'Momentum Story' In 2025, Says Bullish Analyst

On Holding AG ONON management spoke at the 27th ICR Conference, held from Jan. 13 to Jan. 15 in Orlando, Florida.

The company is "a momentum story," they said, citing a healthy performance during the holiday season, according to Needham.

The On Holding Analyst: Analyst Tom Nikic maintained a Buy rating for On Holding, with a price target of $64.

The Thesis: With limited awareness of the company outside Wall Street, there is still a "long runway" for U.S. consumers to learn of "this highly-innovative brand," Nikic said. On Holding is being helped by "high-traffic, high-visibility wholesale doors" as well as by "high-visibility marketing.”

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Despite being a European brand, the continent contributes only 25% of On Holding's sales, the analyst stated. The Zürich-based company has "lots of opportunity" in the continent, especially in Central Europe (Germany, Switzerland, and Austria) where it could "unlock greater brand heat, as the brand’s wholesale presence in these markets now more closely aligns with the brand’s premium positioning," he added.

Management continues to focus on innovation, rolling out new products "that are always rooted in technical performance, which justifies the brand’s premium price points," Nikic wrote. If the company's innovative “Lightspray” technology proves to be successful, "it would allow for local manufacturing of On sneakers, which would be a big supply chain advantage, in our view," he further said.

Price Action: Shares of On Holding had risen by 1.58% to $55.36 at the time of publication on Wednesday.

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