On Holdings’ (NYSE:ONON) recent earnings report has bolstered UBS’ confidence in the Swiss company’s potential for a strong rebound in the market. Analyst Jay Sole and the UBS team envision On (ONON) outperforming its peers, driven by its exceptional sales growth and consistent earnings beats. They highlighted On’s unwavering commitment to innovation, stellar athletic performance, direct-to-consumer sales, and the upholding of a premium, full-price brand identity.
“We recognize On as one of the fastest-growing athletic wear brands globally, deserving of a premium valuation. While the market predominantly perceives On as a running shoe brand, it fails to fully grasp the brand’s capability to tap into a significantly broader market,” remarked UBS.
UBS’s forecast predicts a compelling 35% revenue and 45% EPS CAGRs for ONON over the upcoming five years. Consequently, the firm has revised its price target to $51, reflecting a bullish outlook on On Holdings. Subsequently, On Holdings (ONON) experienced an impressive surge of 8.84% on Wednesday, effectively erasing its post-earnings decline. Year-to-date, the stock has soared by over 60%, underscoring its remarkable resilience amid market fluctuations. Notably, short interest on ONON currently accounts for 8.80% of the total float.
During the earnings call, On Holdings’ executives elaborated on the recent and forthcoming launches of their innovative apparel products.
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