On Holding Stock (NYSE:ONON) – PT Trimmed Ahead of Earnings

On Holding stock (ONON), the Swiss athletic footwear company, has seen its  price fall near to 52 week lows ahead of this week's earnings. This movement comes as the market digests a series of analyst ratings and price target adjustments, creating a complex picture for investors ahead of upcoming earnings reports.

Year-to-date, the stock has declined by 37.1%, indicating significant challenges despite periods of positive momentum.

Analyst sentiment surrounding On Holding is notably divided. Truist Securities lowered its price target from $69 to $60, maintaining a ‘Buy' rating, yet expressing concerns about a potential deceleration in the U.S. market and a broader market shift away from higher-valuation discretionary stocks. Truist's analysis highlighted mixed data, showing strong Q3 results based on Truist Card Data, but also pointed to a decline in TikTok trends, a potential indicator of weakening brand engagement.

Jefferies Financial Group downgraded On Holding to an ‘Underperform' rating, setting a price target of $40, reflecting worries about increased competition within the athletic footwear market. This divergence in analyst opinions contributes to the stock's current instability.

Conversely, other firms have expressed optimism. Morgan Stanley maintained an ‘Overweight' rating, increasing the price target from $62 to $65, signaling confidence in On Holding's growth trajectory. Similarly, J.P. Morgan maintained a ‘Buy' rating with a price target of $71, based on the company's robust revenue growth and strategic initiatives. UBS also raised its price target considerably, from $75 to $79.00.

The latest consensus rating for On Holding AG stands at ‘Moderate Buy,' based on evaluations from 24 research firms, including 19 ‘Buy' recommendations and 3 ‘Sell' ratings. The average price target among analysts is $63.10. Despite a reported loss per share of ($0.11) in the most recent earnings report, the company achieved a substantial 32.0% year-over-year revenue increase, totaling $944.29 million.

The market's reaction to these mixed signals appears cautious. The recent trimming of the stock price suggests that markets are weighing the potential impact of slowing U.S. growth and increased competition against the company’s demonstrated ability to generate revenue growth.  This week's earnings reports will be crucial in providing clarity and shaping market sentiment, either validating the bullish outlook of some analysts or confirming the concerns raised by others.