BofA Slashes PT on On Holding (ONON) to $62 From $73, Keeps a Buy Rating

Core Viewpoint - On Holding AG (NYSE:ONON) is identified as a promising large-cap stock with over 50% upside potential despite a recent price target reduction by BofA analyst Thierry Cota from $73 to $62 while maintaining a Buy rating [1][2]. Group 1: Financial Performance - The company anticipates a 32% organic sales growth in fiscal Q3, with a notable 21.5% growth in the key Americas region [2]. - The price target adjustment reflects the risks associated with competition from Nike and product diversification strategies [3]. Group 2: Market Position and Strategy - On Holding AG is engaged in the development and distribution of sports products, including apparel, footwear, and accessories, with a global sales strategy through distributors, independent retailers, online platforms, and its own stores [3]. - The potential long-term growth may be challenged by the company's focus on team sports development, which could be slower compared to running, especially in light of strong competition from established brands like Nike and Adidas [2].