{"id":25484,"date":"2026-03-04T19:57:37","date_gmt":"2026-03-04T19:57:37","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/25484\/"},"modified":"2026-03-04T19:57:37","modified_gmt":"2026-03-04T19:57:37","slug":"on-holding-growth-story-intact-says-ubs-analysts","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/25484\/","title":{"rendered":"ON Holding growth story intact says UBS analysts"},"content":{"rendered":"

\"ON ON Holding growth story intact says UBS analysts Proactive uses images sourced from Shutterstock <\/p>\n

OH Holding (NYSE:ONON) could see its shares nearly double, according to UBS, which reiterated its \u2018Buy\u2019 rating and $85 price target on the athletic footwear maker following the release of its fourth quarter earnings.<\/p>\n

\u201cWe expect P\/E expansion to drive ONON toward our $85 price target,\u201d they wrote, adding that the company\u2019s Q4 report suggests its long-term growth trajectory remains intact despite foreign exchange headwinds.<\/p>\n

UBS wrote that it believes the company\u2019s \u201cfundamental growth story remains intact, despite FX potentially causing more of an unfavorable impact than previously thought.\u201d<\/p>\n

The firm forecasts five-year compound annual growth rates of 17% for sales, 19% for adjusted EBITDA, and 28% for earnings per share.<\/p>\n

UBS highlighted three main takeaways from On\u2019s fourth-quarter results. First, the company expects first-half 2026 sales growth excluding foreign exchange to exceed its full-year guidance of 23%, even as it faces tougher year-over-year comparisons.<\/p>\n

UBS wrote that management\u2019s confidence in the front-half outlook appears tied to strong early performance from first-quarter product launches. The analysts added that the implied second-half 2026 sales outlook \u201cappears conservative\u201d given a solid product pipeline and a strong Fall\/Winter 2026 order book.<\/p>\n

Second, UBS pointed to margin performance as a key enabler of reinvestment. The analysts wrote that On\u2019s premium positioning and supply chain innovation are driving stronger-than-expected gross margins, allowing the company to reinvest in the brand while offsetting tariff and FX pressures.<\/p>\n

\u201cWe believe ONON\u2019s strategic brand reinvestments have underpinned its industry-leading growth and will continue to support strong performance going forward,\u201d the analysts wrote.<\/p>\n

Third, UBS highlighted progress in scaling On\u2019s LightSpray technology. Ahead of a global launch of its robotically manufactured shoe in the spring, the company announced a new LightSpray factory in South Korea that increases capacity for the product by 30 times.<\/p>\n

\u201cWe think ONON\u2019s growth will positively surprise the market and cause the stock\u2019s P\/E to rerate higher,\u201d the analysts wrote.<\/p>\n

The firm argued that such a growth outlook supports a higher valuation multiple. UBS expects a 33x forward two-year P\/E multiple, compared with roughly 20x currently.<\/p>\n

UBS lowered its fiscal 2026 earnings per share estimate by about 7%, reflecting a more challenging-than-expected foreign exchange outlook as well as expectations that the company will continue reinvesting gross profit back into the business. The firm reduced its fiscal 2026 sales and operating margin forecasts accordingly.<\/p>\n

However, the analysts left their fiscal 2027 and 2028 EPS estimates unchanged and raised their 2027 sales growth forecast by roughly 50 basis points, citing the potential for current investments to support stronger revenue next year.<\/p>\n","protected":false},"excerpt":{"rendered":"ON Holding growth story intact says UBS analysts Proactive uses images sourced from Shutterstock OH Holding (NYSE:ONON) could…\n","protected":false},"author":2,"featured_media":25485,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[129],"tags":[15684,5711,12728,14277,13097,15683,2048,223],"class_list":{"0":"post-25484","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ubs","8":"tag-analysts","9":"tag-foreign-exchange","10":"tag-growth-outlook","11":"tag-growth-story","12":"tag-growth-trajectory","13":"tag-onon","14":"tag-sales-growth","15":"tag-ubs"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116172675011371063","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/25484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=25484"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/25484\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/25485"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=25484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=25484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=25484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}