On Wednesday, TD Cowen demonstrated a continued positive outlook on shares of On Holding AG (NYSE:ONON) by increasing the company's stock price target from $65.00 to $66.00. The firm maintained its Buy rating on the shares of the athletic footwear and apparel company. The adjustment follows TD Cowen's proprietary survey which tracked brand preference trends over multiple years within the Athletic Footwear and Apparel group.
The survey highlighted significant year-over-year gains in brand preference for HOKA and ONON among the general population. This data is particularly relevant as it spans categories such as Running, Casual, and Basketball, indicating a broadening appeal for ONON's products.
TD Cowen's analyst cited the company's potential to meet investor expectations for earnings per share (EPS) growth in the upcoming fiscal year. The initial guidance provided by On Holding AG suggests an EPS growth of 22%, which is part of a broader trend within the industry that includes other companies like DECK and SKX, projected to have EPS growth of 16% and 15% respectively following their fourth-quarter results.
The updated price target reflects the firm's confidence in On Holding AG's performance and its ability to capitalize on the positive trends indicated by the survey. With the maintained Buy rating, TD Cowen signals that On Holding AG's stock remains an attractive investment in the eyes of the firm.
The market will be watching closely as On Holding AG moves forward with its growth strategy, supported by the favorable survey findings and the potential for strong EPS growth in the coming fiscal year. Investors will likely take note of TD Cowen's updated stance as they evaluate their positions in On Holding AG's stock.
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