ONON Stock Forecast & Price Target

On Holding AG is poised for significant growth, with a projected revenue increase of approximately 27% for FY25, equivalent to around CHF 2.94 billion, driven by strong demand and a robust product pipeline. The company has seen a 36% year-over-year increase in sales to CHF 607 million, with footwear, which constitutes 95% of sales, growing by 34%, while apparel and accessories experienced remarkable growth rates of 76% and 84%, respectively. Additionally, On Holding's effective strategic partnerships and enhanced brand activation efforts have led to heightened brand awareness and a notable increase in direct-to-consumer sales, suggesting a solid foundation for sustained financial performance.

On Holding AG faces a negative outlook primarily due to macroeconomic challenges that include a potential recession and declining consumer disposable income, which could significantly reduce demand for its premium athletic products. The pressure on margins from intentional Selling, General and Administrative (SG&A) investments, alongside the decline in footwear growth and potential supply chain disruptions, raises concerns about the company's operating results and brand perception. Additionally, the expected revenue growth and adjusted EBITDA margin fall below guidance, highlighting further risks related to currency fluctuations and broader economic volatility affecting consumer spending.