Need To Know: Analysts Are Much More Bullish On On Holding AG (NYSE:ONON) Revenues

On Holding AG (NYSE:ONON) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that On Holding will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from On Holding's twelve analysts is for revenues of CHF1.7b in 2023, which would reflect a substantial 41% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CHF1.5b in 2023. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.

See our latest analysis for On Holding

Additionally, the consensus price target for On Holding increased 18% to CHF29.45, showing a clear increase in optimism from the analysts involved. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic On Holding analyst has a price target of CHF38.86 per share, while the most pessimistic values it at CHF16.53. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 41% growth on an annualised basis. That is in line with its 45% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.7% annually. So it's pretty clear that On Holding is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. Analysts also expect revenues to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at On Holding.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential flag with On Holding, including concerns around earnings quality. You can learn more, and discover the 1 other flag we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.