On Holding initiated with an Outperform at Bernstein

Bernstein analyst Aneesha Sherman initiated coverage of On Holding with an Outperform rating and $50 price target. The analyst believes the company can sustain “strong double-digit growth.” The On brand still has an attractive combination of low-single-digit market share, low awareness, and low distribution in retail in all major markets, the analyst tells investors in a research note. The firm models 28% annual growth through 2026, slightly ahead of management’s targets and consensus estimates, driven primarily by 40% growth in wholesale distribution from more doors and higher revenue per door, and more than two-times growth in brand awareness in newer markets including the U.S.