ONON Stock Forecast & Price Target

On Holding is a strong growth story, generating significant sales and profits from its line of athletic shoes with the distinctive CloudTec soles. The company's emphasis on direct-to-consumer sales and ability to maintain premium pricing have resulted in strong profit margins, with year-over-year expansions expected in the coming years. While the company has lowered its FY26 sales outlook due to a soft wholesale market, strong full-priced selling and a robust lineup of new products in the pipeline make it an attractive investment opportunity at its current price. Despite facing some headwinds in the wholesale market, On Holding, a leading sportswear company known for its innovative CloudTec soles, is expected to continue its strong sales and profits growth trajectory. This is mainly due to its dominant position in the athletic shoe market, emphasis on direct-to-consumer sales, and strong profit margins. The company has lowered its FY26 sales outlook but maintains its guidance for impressive earnings before interest, tax, depreciation, and amortization (EBITDA) margins. Analysts expect the company's top and bottom lines to grow by 20-25% and 15-20%, respectively, in the upcoming fiscal year. With a target multiple of 20 times FY27 estimated earnings per share (EPS), or approximately $1

On Holding is a relatively young company in the competitive and fickle athletic footwear and apparel industry, and relies heavily on the success of its running shoes, which account for over 90% of sales. Despite strong apparel growth and expansion into new markets, a recent slowdown in wholesale and lowered guidance for the remainder of the year may indicate potential challenges for the brand. Additionally, increased competition and a potentially problematic promotional environment may put pressure on the company's profitability in the near future.