2023-03-16 08:20:32 ET
On Holding ( NYSE: ONON ) stock rose on Thursday after Wedbush shifted from a Neutral to Outperform rating.
“We believe that ONON is one of the most compelling growth stories in our space,” equity analyst Tom Nikic told clients. “The brand is extremely hot right now, we think they beat expectations for Q4, they have a major runway for wholesale distribution expansion, they have major margin tailwinds in 2023, and our survey work shows impressively high levels of consumer loyalty and a high degree of purchase intent among noncustomers.”
While he noted that the current valuation for the Swiss shoe manufacturer is demanding, it is justifiable based upon the growth dynamics for the company, in his view. Nikic noted that lighter freight costs in 2023 and easing supply chain constraints should also return margin expansion.
He hiked his price target to $25 from a prior $20 alongside the upgrade. On Holding ( ONON ) shares jumped 2.4% on light volume in premarket hours.
Read more on the expectations for the company’s upcoming Q4 report .
For further details see:
On Holding upgraded to Buy at Wedbush eyes ‘compelling growth story’