How Diverging Analyst Views on Earnings Growth Shape On Holding’s (ONON) Investment Narrative

• On Holding recently attracted investor focus as analysts projected sizable increases in earnings per share and revenue ahead of its forthcoming earnings report.
• This heightened attention comes amid differing analyst outlooks, with some recommending caution in light of mixed views on the company’s near-term prospects.
• We'll assess how optimism around strong earnings growth potential could reshape On Holding’s investment narrative in the current environment.

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On Holding Investment Narrative Recap

To be a shareholder in On Holding, you need to believe in the company’s ability to sustain rapid international growth, maintain premium brand pricing, and capitalize on direct-to-consumer expansion. The latest projections of strong earnings and revenue growth could be a positive short-term catalyst, yet the most pressing risk is that elevated investments in regional expansion and innovation may pressure margins, an area not directly impacted by the news but still crucial for near-term outcomes.

Among recent developments, On Holding’s upward revision of full-year sales and gross profit margin guidance stands out, reinforcing optimism around potential earnings momentum. Updated targets suggest management is confident in ongoing demand and operational execution, both central to the prevailing expectations for accelerated profit growth and share price performance.

However, as positive as this guidance appears, investors should not overlook the potential for margin compression if high investment fails to ...

Read the full narrative on On Holding (it's free!)

On Holding's outlook anticipates CHF5.0 billion in revenue and CHF561.2 million in earnings by 2028. Achieving this would require 22.9% annual revenue growth and an increase in earnings of CHF425.3 million from the current CHF135.9 million.

Uncover how On Holding's forecasts yield a $66.04 fair value, a 53% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s 18 fair value estimates for On Holding range from CHF 48.81 to CHF 95.79, reflecting wide variability in growth outlooks. With significant ongoing investments potentially impacting margins, your perspective on profitability trends could set you apart from others in the market.

Explore 18 other fair value estimates on On Holding - why the stock might be worth just $48.81!

Build Your Own On Holding Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your On Holding research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free On Holding research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate On Holding's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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