How Upgraded Earnings Forecasts And Bullish Analyst Consensus At On Holding (ONON) Has Changed Its Investment Story

• In recent days, analysts have turned increasingly positive on On Holding, with 24 brokerage firms now converging around a Strong Buy to Buy consensus supported by a Zacks Rank #1 rating.
• This shift in sentiment is grounded in On Holding’s history of outperforming revenue and earnings expectations and in sharply upgraded earnings forecasts that suggest analysts see its growth drivers as strengthening rather than fading.
• Now we’ll examine how these upgraded earnings expectations and bullish analyst views could reshape On Holding’s broader investment narrative.

The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 24 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.

On Holding Investment Narrative Recap

To own On Holding, you need to believe its premium, innovation led brand can keep converting strong top line growth into rising profits as it scales globally. The recent wave of bullish analyst revisions reinforces the near term earnings momentum story but does not materially change the key catalyst, which is execution on higher margin direct to consumer growth, or the biggest risk, that heavy investment and premium pricing eventually compress margins if demand softens.

The most relevant recent development is the repeated upward revision of 2025 sales guidance, with On now targeting at least 34% constant currency growth and CHF 2.98 billion in net sales. This outlook, paired with recent revenue outperformance, underpins the optimistic earnings estimate upgrades that are driving the current positive sentiment, yet it also raises the bar for execution at a time when the company is still investing heavily in global expansion and new categories.

But investors should also be aware that if On’s premium pricing and rapid expansion start to strain consumer demand...

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

On Holding’s narrative projects CHF5.0 billion revenue and CHF561.2 million earnings by 2028. This requires 22.9% yearly revenue growth and about a CHF425 million earnings increase from CHF135.9 million today.

Uncover how On Holding's forecasts yield a $62.08 fair value, a 28% upside to its current price.

Exploring Other Perspectives

Seventeen members of the Simply Wall St Community currently see On Holding’s fair value between US$50 and US$91.11, reflecting a wide spread of expectations. Against that backdrop, the recent analyst upgrades tied to stronger earnings projections invite you to weigh how much growth pressure is now baked into the company’s future performance.

Explore 17 other fair value estimates on On Holding - why the stock might be worth just $50.00!

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 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.

No Opportunity In On Holding?

Our daily scans reveal stocks with breakout potential. Don't miss this chance:

• Find companies with promising cash flow potential yet trading below their fair value.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• Explore 28 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com