In a report released today, John Kernan from TD Cowen maintained a Buy rating on On Holding AG (ONON – Research Report), with a price target of $64.00.
John Kernan has given his Buy rating due to a combination of factors that highlight On Holding AG’s strong growth potential and strategic positioning. Kernan identifies the company’s robust growth strategy, which is expected to extend into 2025 and beyond, as a key driver for his positive outlook. He sees the recent sector weakness as an opportunity to accumulate shares, noting that the market may be underestimating On Holding’s potential for margin expansion.
On Holding AG is recognized for its innovative approach in the premium lifestyle and performance categories, which positions it well to capture a significant total addressable market. The company’s valuation, currently below its historical average, presents an attractive entry point. Additionally, Kernan points out that On Holding’s financial model, particularly its operating leverage, could lead to higher-than-expected earnings per share and free cash flow growth in the coming years. These factors collectively support his Buy rating for the stock.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $66.00 price target.
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