BWG Global Downgrades View on On Holding AG’s (ONON) to Mixed from Positive

Core Insights - On Holding AG (NYSE:ONON) has seen a surge in stock price following updates from analysts regarding its revenue potential and market positioning [1][3] Group 1: Analyst Ratings and Price Targets - Goldman Sachs lowered its price target for On Holding AG to $50 from $57 while maintaining a Neutral rating, suggesting that the company's direct-to-consumer (DTC) model may allow for faster revenue growth compared to competitors like Nike and Adidas [1] - Raymond James analyst Rick Patel reduced the price target to $55 from $66 but set an Outperform rating, indicating optimism about rising revenue estimates in the Softlines and Digital Commerce sectors as consumer momentum improves [3] Group 2: Revenue Estimates and Market Conditions - Goldman Sachs expressed concerns about a long-term revenue estimate of CHF19 billion, citing a lack of exposure to team sports as a limiting factor [2] - The company is facing tariff risks, particularly from potential higher tariffs on imports from China, which could pressure margins despite some relief from foreign exchange shifts [4] Group 3: Company Overview - On Holding AG specializes in the development and distribution of sports products, including apparel, footwear, and accessories, with a global sales strategy that includes distributors, independent retailers, and an online presence [4]