ONON Stock Forecast & Price Target

On Holding AG is positioned for significant growth, with a projected revenue increase of approximately 27% to CHF 2.94 billion in FY25, supported by a strong demand and operational balance observed in recent months. The company's sales surged 36% to CHF 607 million, driven by a remarkable performance in the footwear segment, which constitutes 95% of sales and grew by 34%, alongside substantial acceleration in apparel (76% growth) and accessories (84% growth). Additionally, On Holding's growing appeal among younger consumers and successful strategic partnerships with athletes and celebrities are enhancing brand awareness and direct-to-consumer sales, which accounted for nearly 48.8% of sales in the fourth quarter.

The analysis indicates a negative outlook on On Holding AG's stock primarily due to macroeconomic factors that may depress consumer demand for discretionary products during recessionary periods, impacting revenues derived from the Americas and other regions. Furthermore, the company's aggressive investments in selling, general, and administrative expenses, coupled with slowing growth in the footwear segment, may strain profit margins and affect overall market share. Lastly, potential supply chain disruptions could further exacerbate operational challenges, while foreign exchange pressures and economic uncertainties may hinder revenue growth and profitability.