On Holding stock rating reiterated at Buy by BTIG, citing strong Q2

Investing.com - BTIG reiterated its Buy rating and $70.00 price target on On Holding AG (NYSE:ONON), currently trading at $49.81, following the company’s second-quarter performance that exceeded expectations. According to InvestingPro data, analyst targets range from $52.17 to $78.03, suggesting significant upside potential.

The Swiss athletic footwear company, now valued at $16.13 billion, delivered a broad-based beat in Q2 and raised its annual top-line and margin outlook, despite facing incremental tariff and foreign exchange headwinds that had previously raised concerns among investors. The company maintains impressive gross profit margins of 60.62%, as revealed by InvestingPro data.

BTIG highlighted the acceleration in direct-to-consumer growth, which reached 54% in constant currency, as particularly encouraging. This growth stands in contrast to trends seen elsewhere in the athletic footwear sector, even as Nike (NYSE:NKE) rebounds in the running category.

The research firm noted that On Holding’s guidance appears conservative, as it assumes a substantial deceleration in the second half of the year despite no current evidence of slowing momentum.

BTIG believes On Holding can sustain nearly 30% revenue growth over the medium term—approximately double the growth rate of even the higher performers in the sector—while expanding margins and effectively navigating tariff challenges, justifying its premium valuation and position as a "Large Cap Top Pick."

In other recent news, On Holding AG reported a 38% currency-adjusted revenue increase for the second quarter of 2025, alongside improvements in gross and EBITDA margins. This strong performance has led several analyst firms to adjust their ratings and price targets for the company. Williams Trading raised its price target to $70 while maintaining a Buy rating, reflecting confidence in the company’s financial health. Similarly, Truist Securities reiterated its Buy rating with a $69 price target, noting that the company’s quarterly results exceeded expectations. UBS also maintained a Buy rating, setting a price target of $75, and suggested that On Holding might raise its fiscal year 2025 sales growth outlook. However, not all analysts were entirely positive; TD Cowen lowered its price target to $60 due to concerns about foreign exchange impacts. Raymond James downgraded the stock from Strong Buy to Outperform, citing similar foreign exchange and tariff concerns. Despite these varied perspectives, the overall sentiment among analysts remains generally positive, with multiple firms maintaining Buy ratings.

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