On Thursday, Piper Sandler adjusted its stock price target for On Holding AG (NYSE:ONON), a sportswear brand, increasing it to $39.00 from the previous $37.00. The firm also reaffirmed its Overweight rating for the company's stock. The adjustment follows a meeting with Britt Olsen, the Chief Commercial Officer of On Holding, at the recent ShopTalk conference.
The company's strategy of innovating swiftly yet judiciously, coupled with its focus on relevant design and maintaining a premium market position, was highlighted as a key strength. On Holding's selective approach to wholesale partnerships was noted as a method for authenticating the brand and appealing to a broad range of consumers across different generations.
The expansion of On Holding into new categories and apparel was discussed, with an emphasis on the importance of owned stores in establishing the brand's identity beyond footwear and solidifying its sportswear recognition. Analysts have observed a strong consumer response to new products, including early sell-outs of new styles, which reinforces the brand's market presence.
On Holding's growth strategy and market positioning were likened to the success of lululemon (NASDAQ:LULU) in the apparel sector. The increase in the price target to $39 reflects confidence in the brand's ability to continue capturing market share in both performance and lifestyle segments through its premium positioning.
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