On Wednesday, Evercore ISI announced an updated price target for On Holding AG (NYSE:ONON) shares, increasing it to $43.00 from the previous $40.00, while maintaining an Outperform rating on the stock.
This adjustment follows On Holding AG's reported earnings, which surpassed consensus expectations for both revenues and EBITDA in the first quarter.
The company managed to navigate through the initial volatility of the quarter, which included some indications of distribution challenges in the U.S. However, subsequent evaluations revealed that these issues were not widespread. The firm's analysis indicated robust demand across all regions and channels.
Evercore ISI's report highlighted On Holding AG's resilience and the strong signals of sustained demand. This positions the company favorably as it rolls out new initiatives through 2024 and potentially beyond. These developments are expected to underpin a rare 30% revenue growth rate over several years, a projection supported by the first quarter's performance.
The firm's statement emphasized the positive outlook for On Holding AG, noting, "As we move past the wall of worry in the quarter, we see several new initiatives coming online through 2024 and beyond that could support a scarce 30% revenue growth rate for several years (and 1Q results support that view)."
In conclusion, the analyst at Evercore ISI reiterated the Outperform rating for On Holding AG and raised the target price to $43, signaling confidence in the company's growth trajectory and the effectiveness of its upcoming initiatives.
InvestingPro Insights
With On Holding AG (NYSE:ONON) making waves in the market, investors are keenly watching its performance metrics. According to InvestingPro data, the company boasts a strong market capitalization of $11.57 billion, reflecting its substantial presence in the industry. The reported revenue growth is particularly impressive, with a 33.66% increase over the last twelve months as of Q1 2024, showcasing the company's ability to expand its financial top line significantly.
InvestingPro Tips highlight that On Holding AG holds more cash than debt on its balance sheet, a reassuring sign for investors concerned about financial stability. Additionally, the company's gross profit margin stands at a robust 59.87%, indicating efficient cost management and a solid competitive edge in its sector.
The company's shares have also experienced a significant return over the last week, with a 10.07% price total return. This short-term performance aligns with the positive sentiment expressed by Evercore ISI's updated price target and Outperform rating. For investors seeking a deeper dive into On Holding AG's potential, InvestingPro offers additional insights and tips. There are 19 more InvestingPro Tips available, which can be accessed through InvestingPro's comprehensive analysis platform at https://www.investing.com/pro/ONON. To enhance your investing strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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