ONON Stock Rises Premarket: Retail Says 'Smack That Buy Button'

BofA reiterated a Buy rating and $43 target for On Holding (ONON). Q3 sales growth slowed to 25% but is expected to rebound. Wholesale sales exceeded estimates, and margins are addressed through cost reductions. Q3 earnings beat estimates with $0.54 EPS and $931.4M revenue. Analysts have mixed outlooks, with targets ranging from $40 to $43.

On Holding AG (ONON) rose 4.70% premarket after KeyBanc raised its price target to $42, citing expected Q4 growth and long-term margin expansion. KeyBanc noted Q3 wholesale beat estimates, while direct-to-consumer sales underperformed. Goldman Sachs and Truist Securities expressed caution on margins and Asia-Pacific trends.

On Holding AG (NYSE: ONON) reported Q3 growth in footwear (16%), apparel (38%), and accessories (40.2%). The Cloudsurfer 3 shoe had strong initial sales. The company plans to expand production capacity and launch new products in football and golf. On reiterated its full-year sales growth forecast of low 20% and raised its gross margin outlook to around 66% (67.5% including tariff refunds).

On Holding AG (ONON) expects FY2026 gross margin around 66% and adjusted EBITDA margin of 19.5%-20%, anticipating Q4 growth acceleration. CEO Coppetti outlined the 'On Premium Playbook' strategy, aiming to outpace industry growth and increase earnings faster than sales.

Goldman Sachs reduced its price target for On Holding AG (NYSE:ONON) to $41 from $44, citing Q3 2026 results. The company reported 17.8% sales growth, 21.9% adjusted EBITDA margins, and $931.4M revenue, beating estimates. Goldman maintains a Buy rating, noting growth opportunities in 2027. Truist Securities also reiterated a Buy rating with a $40 target, highlighting strong Americas performance but softer Asia-Pacific trends.

On Holding (ONON) shares dropped 7.86% to $34.58 after reporting record Q3 net sales of CHF 931.4 million, up 17.2%. Gross margin was 72.6%, including CHF 52.6 million in U.S. tariff refunds. Excluding refunds, gross margin was 66.9%. The company maintained its full-year sales outlook and raised its adjusted EBITDA margin target to 21.0%-21.5%.