On Holding steals the show from Adidas, Nike and Puma!

The innovative Swiss running and casual shoe manufacturer On continues to grow at a breathtaking pace. The Q3 numbers were good, and many analysts subsequently raised their price targets for the stock. On is one of the few sports brands, along with Hoka and Brooks, that have experienced strong growth in recent years. All three brands benefit from the twin global trends of greater fitness awareness and acceptance of casual clothing.

On’s net sales climbed to 636 million Swiss francs in the third quarter. Plus 32 percent compared to the previous year. Expectations in advance were 615 million francs. Adjusted Ebitda was 120 million francs. Plus 48 percent (estimate 108 million francs).

Following the figures, management revised its forecast for net sales growth for the full year 2024 upwards from 30 percent to 32 percent or 2.29 billion Swiss francs.

“Impressive Q3 results that clear a very high hurdle,” said Jonathan Komp from Baird, commenting on the figures. Your price target for the stock is $55. Analyst Janine Stichter from BTIG upgraded the stock from “neutral” to “buy” following the numbers. The current price target is $64. “We view Q3 as a representation of ON’s true sales momentum and future profitability,” said Stichter.

The upgrade reflects BTIG’s confidence in On Holdings’ current momentum. BTIG also noted the company’s robust product pipeline and increasing brand recognition, particularly in the United States.

On has upside potential in the area of ​​clothing. In 2022, On made around 95 percent of its revenue from sports shoes. The clothing segment contributed five percent. On wants to increase sales to 3.55 billion Swiss francs by 2026. The margin is to be expanded to 18 percent.