BMO raises On Holding stock price target to $35 on sales outlook
BMO Capital increased its price target for On Holding AG (NYSE:ONON) to $35.00, citing strong sales and earnings expectations. The company is anticipated to surpass third-quarter estimates, with a 17% constant currency growth guidance. BMO notes On Holding's strong fundamentals, including a 64.82% gross profit margin and a PEG ratio of 0.12. The stock is currently trading at $32.17, suggesting modest upside to the new target.
How this was made
The 30-second read
Why it matters
Analyst price target raise may attract short-term buying, but ongoing brand risks in China remain.
Market read
The article provides a fresh analyst target upgrade for ONON, offering a modest bullish cue while highlighting brand risk factors.
What to watch
Potential backlash in China over Kylian Mbappé controversy could dampen growth.
Background
On Holding AG is a Swiss athletic footwear and apparel company listed on NYSE under ticker ONON.
Ticker impact
BMO Capital raised its price target for On Holding AG to $35, above the current $32.17 price.
likely pressure upward as the market prices in the higher target.
The new $35 target represents a ~9% upside from the current price, indicating BMO sees stronger earnings and growth prospects.
Market effects
Positive sentiment may lift other premium athletic footwear stocks.
European consumer discretionary sector could see modest gains.
Limited to footwear and apparel niche; no broad market effect.
Counterpoint
Jefferies maintains an Underperform rating citing margin pressure from higher marketing spend.
Key entities
- AnalystBMO Capital
Raised price target to $35 and kept Market Perform rating.
- AnalystJefferies
Maintains Underperform rating citing margin concerns.
