2024-03-14 08:35:36 ET
Summary
- On Holding released a solid Q4'23 report, but currency translation resulted in a large net income miss.
- On's strategy to Elevate, Expand, and Establish their brand will be the main growth driver for the next few years.
- Despite the negative reaction, the lower stock price presents a buying opportunity as it represents fair value for the company.
It has been a volatile ride for shareholders of ON Holding AG ( ONON ) over the last 12 months. I last covered the stock after the release of it 2Q'23 results, which were broadly reminiscent of the recently released 4th quarter result, with strong top line growth, but strength of the Swiss franc causing a large net income loss. Then, as now, the market had soured on short-term profit expectations while longer-term expectations remaining intact. It seemed like a classic dip-buying opportunity. This same opportunity arose post the Q4 result, but alas, it appears to have dissipated as quickly as it arrived....
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On Holding Remains A Buy After Earnings Pullback