ONON Stock Forecast & Price Target

On Holding AG is experiencing significant revenue growth, with sales increasing 36% to CHF 607 million and a strong guidance forecast projecting at least CHF 2.94 billion in FY25, which reflects an expected growth rate of approximately 27%. The company's operational success is underscored by impressive performance across product categories, particularly in footwear, which accounts for 95% of sales, and has achieved a remarkable growth rate of 34%, aided by new performance running product launches. Furthermore, On Holding's strategic partnerships and brand activations have bolstered brand awareness and direct-to-consumer sales, which now represent nearly 48.8% of total sales, indicating strong consumer engagement and market penetration.

On Holding AG faces a challenging outlook primarily due to macroeconomic factors such as a potential recession and lower disposable income, which are likely to diminish consumer demand for its premium products. The company's aggressive expansion strategy and increased spending on sports marketing and SG&A may result in margin pressures and affect brand perception, further limiting growth potential in the footwear market. Additionally, supply chain disruptions pose risks that could adversely impact operating results while foreign exchange pressures are expected to significantly lower revenue growth and profitability metrics relative to industry expectations.