Update shared on19 Sep 2025
Fair value Increased 1.37%On Holding's consensus price target was modestly raised to $66.76 as analysts reflected optimism about sustained earnings outperformance and prudent guidance, though some remain cautious about potential growth deceleration and market limitations, resulting in only a slight upward revision in fair value.
Analyst Commentary
- Bullish analysts expect multiple expansion as the company continues to deliver beat-and-raise earnings reports.
- Q2 revenue and EBITDA outperformance, along with prudent guidance, have led to increased financial estimates from bullish analysts.
- Bearish analysts believe 2025 will be the peak for sales growth, with a subsequent deceleration as U.S. door count expansion slows and retailer orders shift back to competitors like Nike.
- Concerns exist over On Holding's high pricing and narrow product assortment, which are seen as limiting its total addressable market.
- Bearish analysts forecast valuation moderation as growth rates slow in the coming years.
What's in the News
- On Holding AG raised full-year 2025 earnings guidance, expecting at least 31% year-over-year net sales growth (previously at least 28%), with net sales of at least CHF 2.91 billion and gross profit margin of 60.5-61.0% (previously 60.0-60.5%).
- On Holding AG was added to a broad range of Russell indices, including Russell 1000 Growth, Russell 3000E Growth, Russell 3000 Growth, Russell Midcap Growth, Russell Small Cap Comp Growth, Russell 3000E, Russell 3000, Russell Small Cap Completeness, Russell Midcap, Russell 1000, and Russell 1000 Dynamic.
Valuation Changes
Summary of Valuation Changes for On Holding
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $65.86 to $66.76.
- The Future P/E for On Holding remained effectively unchanged, moving only marginally from 49.62x to 50.31x.
- The Discount Rate for On Holding remained effectively unchanged, moving only marginally from 7.96% to 7.97%.
Disclaimer
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