On Holding AG (Symbol: ONON) made headlines recently as its shares climbed above the average analyst 12-month target price of $57.89, currently trading at $58.20 a share. When stocks reach analyst-set targets, experts usually have two choices: either downgrade their valuation or raise their target prices. Analyst reactions can also hinge on the company’s recent developments, which could justify a upward revision.
The average target is based on contributions from 19 different analysts within the Zacks coverage framework. However, these targets vary; one analyst has set a cautious price target of $34.00, while another is optimistic, aiming for $64.00. The average has a standard deviation of $7.541, indicating a range of opinions among analysts.
Investors glance at average targets to benefit from the “wisdom of crowds,” combining insights from multiple analysts rather than relying on a single perspective. Now that ONON has exceeded the average target price of $57.89, this presents a moment for investors to evaluate the company. They must decide: is $57.89 merely a stepping stone toward higher prices, or is the valuation stretched to a point where it might be wise to take profits? Below is a summary of the current analyst sentiments regarding On Holding AG:
| Current Analyst Ratings for ONON | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 17 | 15 | 15 | 16 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 1 | 2 | 2 | 2 |
| Sell ratings: | 0 | 0 | 0 | 1 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.16 | 1.28 | 1.28 | 1.40 |
The average rating mentioned above uses a scale from 1 to 5, where 1 signifies Strong Buy and 5 indicates Strong Sell. Data for this article was sourced from Zacks Investment Research via Quandl.com. For more detailed insights, check out the latest Zacks research report on ONON — available for free.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
