Shares of On Holdings (NYSE:ONON) fell after the company disclosed some of its future plans at a recent investor event in Zurich. The Switzerland-based sports brand company announced a new three-year target to grow its net sales and operations.
Notably, the firm unveiled financial targets it plans to pursue in the coming years. To actualize them, On Holdings also outlined the strategic building blocks to help it get there. One of the prominent plans is to double its expected 2023 net sales by 2026 and increase its adjusted EBITDA margin to over 18% during the same period.
Furthermore, the company intends to drive growth in its core areas based on three principles: Elevate, Expand, and Establish. With Elevate, On Holdings plans to capture more market share and increase its brand awareness among sporting communities. Additionally, the company also plans to build its credibility and sustainability impact.
Also, On Holdings wants to expand its geographical reach and set up shops in new territories. With what it referred to as Expand, the company plans to grow its distribution channels and increase its presence and footprint in China.
As seen with most companies, On Holdings wants to build communities around its products through Establish. Plans under this growth pillar include establishing training communities and lighting tennis courts.
What is the Price Prediction for ONON Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ONON stock based on nine Buys, two Holds, and two Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $35.49 per share implies 43.05% upside potential.
