On Holding initiated with a Neutral at Citi

Citi analyst Paul Lejuez initiated coverage of On Holding (ONON) with a Neutral rating and $65 price target On is a premium global athletic footwear brand rooted in Swiss engineering and its sales have grown rapidly in recent years amid share gains from more established players, the analyst tells investors in a research note. The firm sees opportunity for On to expand in apparel, China and its own store footprint, but says expectations are elevated and the shares trading at an price-to-earnings ratio of 56.4-times on 2025 estimates. As such, it sees the stock’s risk/reward as balanced, and would look for a better entry point to own the shares.