ONON Stock Forecast & Price Target

On Holding AG has demonstrated a positive financial outlook, highlighted by a 28% increase in direct-to-consumer (DTC) sales, which contributed to an improved sales mix of 39.6%, while wholesale sales also grew by 23%. The company anticipates significant growth in Latin America, with an impressive 70% compound annual growth rate projected for South America, supported by a strong brand presence and recent market expansion initiatives, such as the opening of its first retail location in Santiago, Chile. Additionally, the expansion of athlete partnerships and ongoing product innovation have bolstered brand awareness, positioning On Holding favorably in a competitive market.

On Holding AG faces significant financial headwinds, as projected revenue growth for FY26 may decline to below 20%, potentially resulting in revenues falling short of targets by 5% or more. This anticipated slowdown in growth is compounded by the impact of tariffs on U.S. imports and an expected weakening of profit margins, with adjusted EBITDA forecasted to be approximately 100 million CHF below previous estimates. Additionally, currency fluctuations, particularly the appreciation of the Swiss franc, are set to further challenge the company's financial performance, adding to the negative sentiment surrounding the stock.