Story
On Holding Named Top Consumer Pick by BTIG Ahead of Investor Day
Investment firm BTIG has identified Swiss athletic footwear company On Holding (NYSE: ONON) as a top investment opportunity in the consumer and lifestyle sector, citing high expectations for the company's first investor day in three years on September 22.
Investor Day in Focus
The event is significant as it follows recent leadership changes, including new CEO and CFO appointments earlier this year. According to BTIG, the investor day is a key moment for the company to restore investor credibility after it lowered its outlook for the first time in August.
BTIG analysts view that guidance revision not as a sign of weakness, but as a strategic move to protect full-price sales and prepare for new product innovation. The firm expects On's management to present a new three-year growth plan emphasizing margin health and direct-to-consumer priorities, with a more moderate but sustainable growth trajectory that aligns with current market dynamics.
BTIG's Financial Outlook
BTIG noted that On Holding is already significantly outperforming the 2026 financial targets it set at its October 2023 investor day. The company is on pace for a 30% constant currency compound annual growth rate (CAGR) through 2026, well ahead of its goal for a 26% CAGR.
AdFor the upcoming event, BTIG anticipates On will issue new targets for 2029, projecting:
- Constant currency revenue growth in the high teens to 20% range.
- Adjusted EBITDA margins in the low 20% range or higher.
- This would imply 2029 revenues reaching CHF 5.8 billion, comfortably above the current consensus estimate of CHF 5.57 billion.
Valuation and Analyst Ratings
BTIG maintained its $60 price target on On Holding's stock, based on a valuation of approximately 28 times its 2027 price-to-earnings estimate and 17 times its enterprise value-to-EBITDA forecast.
Other Wall Street firms have recently updated their views on the company. Morgan Stanley resumed its coverage with an Overweight rating, while BMO Capital initiated coverage with a Market Perform rating. Separately, BofA Securities lowered its price target on the stock to $43, citing broader concerns about sector growth.
Read next
More on Stocks
FTC Orders Walmart, Uber, Delta to Disclose Data on Personalized Pricing
The U.S. Federal Trade Commission is demanding nine major companies, including leading retail, travel, and gig economy firms, to provide information on how they use consumer data for setting individual prices and wages.
Google Launches Gemini 4 Carbon AI Model to Bolster Cybersecurity Capabilities
Alphabet's Google has unveiled Gemini 4 Carbon, its latest AI model specifically designed for advanced cybersecurity tasks like vulnerability detection and secure code generation. The launch escalates competition with rivals OpenAI and Anthropic in the enterprise AI market.
Oracle Shares Surge After Unveiling $225 Billion Revenue Target for 2030
Oracle stock rose sharply after the company presented a long-term financial outlook targeting at least $225 billion in annual revenue by fiscal 2030, driven by its expanding AI infrastructure business.
DOJ Scrutinizes Nvidia's $12.9B Hugging Face Deal Amid Broader Antitrust Probe, Sources Say
The U.S. Department of Justice is reportedly examining Nvidia's planned $12.93 billion acquisition of AI platform Hugging Face as part of a wider, ongoing antitrust investigation into the chipmaker's market conduct.