![]() Sam Poser, at Williams Trading, upgraded the stock to “Hold” from “Sell” with a price target of $26. Komp stated, “While some investors were hoping for a 2023E update (targets simply reiterated), we believe strong consumer demand and positive orders for spring 2024 support upside potential to estimates.” He further wrote that management struck a “bullish tone” about the business, implying the stock’s softness may have been tied to a hoped-for upward guidance adjustment. Komp said On’s senior leaders presented “credible strategies to become a global premium Sportswear brand spanning running/outdoor/training/tennis/court, and ‘performance all day’” with the brand still having low brand awareness in key markets, including 9 percent in the U.S. Komp wrote, “With the in-person portion of last week’s Zurich investor day reinforcing our confidence in current brand health and the upcoming three-year pipeline of growth drivers (raising 2024-2025E margin assumptions), and with current valuation consistent with the low end of our early-stage growth factor framework, we see increasing appeal for ONON on a one- and multi-year basis.” In a note, Komp wrote that On’s shares are down 23 percent since early April and are only 5 percent above its September 2021 IPO price of $24. By Monday, On’s shares had shown minimal recovery, closing at $25.19Īmong analysts covering the stock, Jonathan Komp, at Baird, upgraded his rating on On’s stock to “Outperform” from “Neutral” while maintaining his price target at $33. On Investor Day, however, shares of On fell 94 cents, or 3.6 percent, in over-the-counter trading in the U.S. On expects gross margins to exceed 60 percent gross profit margin by 2026 and adjusted EBITDA margin to reach at least 18 percent. The projections call for sales between 20 to reach at least CHF3.55 billion, or approximately $3.95 billion at the average September 2023 conversion rate, reflecting a compounded annual growth rate (CAGR) of over 26 percent based on the outlook for the full fiscal year ending December 31, 2023. On reiterated its previous guidance for 2023 and provided targets for the next three. ![]() Establishcredibility in training, tennis and head-to-toe looks across existing verticals.Expand geographic footprint through premium multi-channel distribution, owned retail and China and.Elevate market share in core running, with growing brand awareness.However, two analysts upgraded On’s stock and a number of other upbeat reports arrived in recent days as most analysts were left impressed by its ambitious long-term growth strategy.Īt its Investor Day held at On’s Zurich headquarters, the company’s leadership team released a three-pronged growth strategy: Shares of On Holding remained down slightly since the company’s Investor Day last week due, apparently, to concerns that On’s third-quarter results will miss estimates.
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