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On Holding AG shares target raised by Telsey on strong brand growth

EditorEmilio Ghigini
Published 05/15/2024, 05:34 AM

On Wednesday, Telsey Advisory Group increased its price target for On Holding AG (NYSE: ONON) shares to $40, up from the previous $37, while retaining an Outperform rating for the company's stock.

The firm's decision follows On's consistent narrative, which has been bolstered by growing global brand recognition and robust direct-to-consumer (DTC) growth in the first quarter of 2024.

The company's key franchises, including Cloudmonster and Cloudrunner in the running category, and Cloud and ROGER in other segments, have shown impressive performance, with Cloudmonster and ROGER sales rising by 30% and 45% respectively in the first quarter of 2024. On's success is also attributed to the positive reception of new releases such as Cloudmonster 2.0 and Cloudtilt.

In addition to footwear, On is making strides in the apparel market, which is still in its nascent stages. The brand is taking measures to clear the marketplace, paving the way for the introduction of new and improved products throughout the year.

On's marketing strategy is focusing on larger, less frequent campaigns and strengthening its partnerships to amplify its presence during key product launches and major sporting events.

On's marketing initiatives include the recent announcement of a collaboration with artist FKA twigs, who will be the new face of On's training apparel set to launch in August.

Furthermore, the company hinted at upcoming additions to its roster of emerging tennis talent and teased the introduction of a new global brand ambassador in the weeks ahead.

InvestingPro Insights

Following Telsey Advisory Group's upbeat assessment of On Holding AG (NYSE: ONON), InvestingPro data further substantiates the company's strong market position. With a market capitalization of $11.57 billion, On Holding AG stands as a significant player in the industry. The company's revenue has seen a remarkable growth of 33.66% over the last twelve months as of Q1 2024, reflecting its increasing brand strength and market penetration. Moreover, On Holding AG boasts a gross profit margin of 59.87%, underscoring its ability to maintain profitability amidst its expansion efforts.

InvestingPro Tips highlight that On Holding AG holds more cash than debt, ensuring a stable financial base for future operations, and analysts are optimistic about the company's prospects, anticipating net income and sales growth in the current year. These insights, coupled with the company's impressive 10.07% return over the last week, paint a picture of a company on an upward trajectory. For readers looking to delve deeper into On Holding AG's financials, there are 19 additional InvestingPro Tips available, which can be accessed with a special offer: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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