2023-03-22 13:02:57 ET
Credit Suisse reiterated an Outperform rating on On Holding AG ( NYSE: ONON ) and pushed up its price target to $33 from $28. The new price target implies a market cap for ONON of over $10B.
The firm sees a long runway of growth for the brand aided by store growth, as well as the expansion into tennis and kids shoes.
Crucially, analyst Michael Binetti said On Holdings' momentum in Q1 is already trending above the company's own guidance and Street. "ONON has suggested there could be upside to both 1Q and 2023 based on current momentum and 2H order books," he advised.
Another positive factor seen for ONON is that it has been relatively resilient against heavy markdowns within category due to brand strength with consumers, which sets it up well to top margin expectations.
Seeking Alpha controbutor Felix Fung posted a detailed breakdown on On Holding earlier on Wednesday, with a special focus on the massive expansion opportunities.
Shares of On Holding ( ONON ) rallied 1.58% on Wednesday and are up 60% year-to-date. The stock trades above its IPO pricing level from Septmeber of 2021, but is still about 40% below its all-time high.
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On Holding is called a $10B stock by Credit Suisse