On Holding's Growth Soars: Analysts See Strong Upside Amid New Initiatives Beyond Footwear, Star-Studded Marketing

On Holding AG (NYSE: ONON) has seen a commendable rise in its stock price, reflecting positive market sentiment and projections from several analysts. The renewed confidence from experts stems from the company’s strong growth trajectory, savvy marketing strategies, and its efforts to diversify beyond footwear.

Analyst Ratings and Price Targets

On Wednesday, multiple firms updated their price forecasts for On Holding, indicating a bullish outlook for the stock:

• Telsey Advisory Group analyst Cristina Fernández has reiterated an Outperform rating with a price target of $67.
• Needham analyst Tom Nikic holds a Buy rating with a target set at $64.
• Raymond James analyst Rick B. Patel has maintained a Strong Buy rating, projecting a price of $68.

Each of these forecasts highlights the underlying belief that On Holding is well-positioned to meet or exceed its financial goals for the coming years. Analysts point to the company’s manufacturing base in Vietnam, which minimizes risks associated with Chinese import tariffs, as a significant advantage.

Growth Beyond Footwear

Analysts have noted that On's apparel segment is rapidly gaining momentum. According to Fernández, the company is on course to achieve its 2026 financial targets, thanks to progress from new retail locations and effective marketing collaborations that feature prominent figures like Zendaya and FKA Twigs.

The marketing strategies have not only boosted sales but have also helped to solidify On’s brand image among younger consumers, particularly those from Generation Z. Nikic indicated that the collaboration with celebrities has significantly enhanced the brand’s visibility, driving sales among consumers under 35.

According to Patel at Raymond James, On is enhancing its e-commerce platform to better present its apparel offerings, furthering its transformation into a lifestyle brand rather than just a footwear company. This strategic positioning is expected to be pivotal in expanding market reach and brand loyalty.

Future Projections

Looking ahead, analysts have updated their revenue and margin estimates for 2025 and 2026. Predicted revenue growth stands at 29% for 2025 and 22% for 2026. Notably, the EBITDA margin is expected to improve to 17.4% in 2025, rising to 18.1% by 2026. Previous estimates for revenue were slightly lower, showcasing the company’s improving financial health.

Current Market Performance

As of the latest trading session, ONON shares have enjoyed an uptick, rising 5.25% to reach $53.29. This bounce reflects investor optimism and highlights the increased interest in On Holding's stock.

Conclusion

Overall, On Holding AG is carving out a significant niche for itself through innovative marketing, key celebrity partnerships, and expansion into apparel. With analysts expressing strong upside potential, the company is poised for a promising future that transcends its original footwear focus.

growth, apparel, marketing