ONON Stock Forecast & Price Target

On Holding AG is poised for substantial growth, with projected revenue increases of 20-25% in FY26 and 15-20% in FY27, driven by heightened brand awareness, innovative product offerings, and expansion in direct-to-consumer and wholesale channels. The company's strong sell-through rates and full-price selling indicate robust brand momentum, positioning it well to meet or surpass its financial targets for 2025. Furthermore, the anticipated focus of CEO Mr. Hoffmann on strategic growth initiatives and continued margin expansion supports a fundamentally positive outlook for the company.

The analysis indicates a negative outlook for On Holding AG's stock primarily due to concerns over its lofty valuation multiples, which present significant risks for multiple contraction if investor sentiment deteriorates. Furthermore, projected revenue growth is anticipated to slow, with FY26 revenues potentially falling 5% below targets, and FY26 adjusted EBITDA forecasts showing a substantial shortfall of approximately 100 million CHF. Additionally, vulnerabilities related to the promotional retail environment and broader economic factors such as commodity cost volatility and declining consumer confidence could further threaten margins and growth prospects.