UBS lowers On Holding stock price target to $82 on valuation By Investing.com
UBS cut its price target for On Holding AG (NYSE:ONON) to $82 from $85, keeping a Buy rating. UBS expects Q2 currency-adjusted sales growth to beat guidance by 100 bps. The firm cites nearly 23% trailing-twelve-month revenue growth and 64% gross margins, and forecasts 2026 currency-adjusted sales growth of 23% plus 50 to 100 bps.
How this was made
The 30-second read
Why it matters
For traders, the actionable element is the PT reduction paired with unchanged rating, which can affect positioning into earnings and implied volatility expectations.
Market read
Valuation reset from a major bank plus earnings-move expectations (options implying about +/-4.9%) can guide risk management into the next earnings catalyst.
What to watch
The article highlights macro uncertainty as a downside risk; traders may also watch for currency moves and any evidence that gross margin strength (64%) is not repeatable.
Background
UBS updated its valuation on On Holding by lowering its price target while keeping a Buy rating, framing the change around expected Q2 outperformance and a higher FY currency-adjusted sales growth outlook.
Ticker impact
UBS lowered On Holding’s price target to $82 from $85 while keeping a Buy rating, citing expectations for Q2 sales growth and higher FY outlook.
Near-term bias slightly negative versus prior PT, with follow-through dependent on whether upcoming Q2 results confirm the currency-adjusted growth and margin momentum.
The article is a sell-side PT change (valuation) rather than a new fundamental shock, and it explicitly ties the outlook to continued sales growth and momentum.
Market effects
Could modestly influence sentiment across European sporting goods and footwear peers by reinforcing a high-multiple growth narrative with currency sensitivity.
Limited direct impact; the opening KOSPI note is a market wrap rather than a catalyst for On.
Currency-adjusted growth focus may matter for global apparel/athletic brands with international revenue exposure.
Counterpoint
The PT cut may be a signal that UBS is less confident in sustaining the high-multiple growth profile, even if it still expects >20% topline growth.
Key entities
- companyOn Holding AG
Subject of UBS’s price-target cut and the expected Q2 and FY currency-adjusted sales growth updates.
- analyst_firmUBS
Issued the price target reduction to $82 from $85 and maintained a Buy rating.
