2024-05-19 03:27:43 ET
Summary
- On has mid-term operative momentum on its side, with profitable growth unlike any competitor at the moment.
- However, the low-hanging fruits might have already been picked, potentially confronting On with the harsh reality of slowing growth in a competitive market.
- Nevertheless, I see On as one of the young new market participants with the potential to threaten even Nike in the long term.
- Valuation is priced for further high growth, which is within the realm of possibility.
- I typically rate Hold/neutral, even when my inclination is bullish or bearish. Rating systems don't consider time horizons or investment strategies. My articles aim to inform, not to make decisions.
Thesis
On (ONON) currently fulfills all the desires of an investor straight out of a textbook, exhibiting outstanding profitable growth. Following the playbook of Nike (NKE) in certain ways, On might just be the fresher brand, and with its premium strategy, has the potential to become a serious threat to the market leaders....
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On Holding: Valued For Promising Growth