Core Viewpoint - On Holdings AG's stock has been declining as investors express concerns about its future growth prospects, particularly in light of Nike Inc.'s resurgence [1][2] Group 1: Growth Trajectory - There have been concerns since April regarding On's ability to sustain its growth trajectory, with Wall Street anticipating a solid third quarter report [2] - Telsey Advisory Group analyst Cristina Fernández predicts a "natural deceleration" in On's growth rate to 20% in the third quarter from 32% in the previous quarter [3] - Despite the anticipated deceleration, there is still "very good traffic" to On stores, and the brand is expected to benefit from strength in its tennis category and a strong wholesale order book [4] Group 2: Competitive Position - Concerns about Nike's rebound affecting On are considered "overblown," as On's diverse growth drivers across channels, geography, and product categories make it less vulnerable to Nike's improvements [5] - Management's comments suggest a focus on strategically controlling growth to sustain strong multi-year gains rather than indicating a decline in underlying demand [6] Group 3: Future Prospects - Analyst Janine Stichter believes On can sustain revenue growth exceeding 20% in the medium term, which is the highest among its peers, justifying a premium valuation [6] - Stichter has set a price target of $70 for On shares, highlighting the potential positive impact of recent product launches and events, such as the Cloudzone launch and Hellen Obiri's NYC Marathon win [6] - Upcoming product launches in 2026, including the relaunch of Cloudmonster 3 and Cloudrunner 3, are expected to contribute to continued growth, along with strong wholesale sell-through and share gains in the direct-to-consumer channel [7]