2023-07-31 14:46:55 ET
BTIG started covering On Holding ( NYSE: ONON ) on Monday with a Neutral rating.
Analyst Janine Stichter has a positive view on the footwear stock, but believes the upside is priced in. Stichter noted that On ( ONON ) has established itself as a premium, innovative brand with global appeal, and is still seen as having significant untapped opportunity ahead. Stichter and team are also encouraged by survey work suggesting usage skewing towards performance over casual and high repeat intent. Meanwhile, product reviews are observed to suggest growing traction with dedicated runners after last year's Cloudmonster launch. However, BTIG is closely monitoring broad market concerns around over-saturation and the durability of the On brand's popularity.
"We see upside potential to margins, but balanced by risks. While we expect strong growth, we believe this is largely anticipated by the market, which combined with a premium valuation, supports our initiation at Neutral."
Shares of On Holding ( SG ) gained 1.48% in late afternoon trading on Monday to $35.72. Short interest on ONON has moved up to 9.26% of total float.
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On Holding attracts cautious ratings initiation at BTIG