Raymond James cuts On Holding target on wholesale weakness
Raymond James downgraded On Holding (ONON) to Outperform from Strong Buy and cut its price target to $38 from $52 after weaker-than-expected Q2 revenue and a reduced growth outlook. Q2 revenue rose 13.5% vs 19% estimate, wholesale growth lagged, and 2026 ex-currency growth guidance was lowered to low-20% range.
How this was made
The 30-second read
Why it matters
Near-term trading focus is likely to shift from brand strength to wholesale demand durability, with the PT cut reflecting reduced confidence in upside despite maintained profitability targets.
Market read
A concrete sell-side downgrade with a large PT reduction and specific operating drivers (U.S. wholesale softness, lowered 2026 ex-currency growth) creates a tradable near-term sentiment shift.
What to watch
The article notes unit-volume implications for wholesale versus DTC; traders may want to watch whether promotional intensity truly proves temporary and whether new product launches late 2026 improve sell-through.
Background
Raymond James reacts to On Holding’s Q2 results with a rating downgrade and a materially lower 2026 growth outlook, citing North American wholesale softness and limited visibility.
Ticker impact
Raymond James downgraded On Holding to Outperform and cut its price target to $38 from $52 after weaker-than-expected Q2 revenue and a lowered growth outlook.
Bias toward downside or underperformance versus prior expectations until wholesale stabilizes; rallies may fade if investors focus on the lowered 2026 growth outlook.
The article provides specific analyst actions (rating and PT cut) tied to concrete operating drivers: U.S. wholesale softness, reduced visibility, and a lowered 2026 ex-currency growth outlook.
Market effects
Highlights ongoing pressure in athletic footwear wholesale channels and intensifying North America competition, which can pressure sector sentiment around demand visibility.
Emphasizes U.S. wholesale weakness as the key drag, suggesting regional apparel/footwear distributors may face similar read-through.
International distribution and DTC strength are cited as offsets, implying the negative read-through is more concentrated in North America wholesale than globally.
Counterpoint
DTC outperformance and higher gross-margin outlook could mean the wholesale pullback is temporary channel management rather than a durable demand collapse.
Key entities
- companyOn Holding
Swiss sportswear maker downgraded by Raymond James after weaker Q2 revenue and a lowered growth outlook.
- analyst_firmRaymond James
Brokerage that cut the rating to Outperform and reduced the price target to $38 from $52.
