On Thursday, TD Cowen demonstrated confidence in On Holding AG (NYSE:ONON), as the firm increased its price target for the company's shares to $38.00 from the previous $36.00, while maintaining a Buy rating on the stock. This adjustment comes amid expectations for the company's financial performance throughout the rest of the year.
The analyst at TD Cowen believes that for On Holding AG to meet market expectations, the company's management will need to reaffirm its full-year revenue guidance, which anticipates a slight acceleration in the second half of 2024. The firm does not expect a significant uplift in guidance for sales, gross margin, or Adjusted EBITDA margin following the first quarter results.
TD Cowen's projections for On Holding AG's earnings per share (EPS) for the fiscal year 2024 remain above the consensus, due to anticipated higher operating leverage and favorable foreign exchange (FX) tailwinds. The analyst suggests that the general consensus may not be accurately factoring in these elements as the fiscal year progresses.
The analyst's comments indicate a belief that On Holding AG's current strategies and market conditions, including currency exchange influences, will contribute positively to the company's operational efficiency and profitability.
On Holding AG's stock performance and financial outlook will continue to be of interest to investors as the company navigates through the fiscal year, with particular attention paid to whether the company will maintain its forecasted revenue growth in the latter half of 2024.
InvestingPro Insights
Following the optimistic update from TD Cowen, current metrics from InvestingPro provide a deeper look into On Holding AG's (NYSE:ONON) financial health and market performance. With a market capitalization of $9.97 billion, On Holding AG is trading at a high P/E ratio of 125.64, reflecting a premium valuation by the market.
The company's gross profit margin impressively stands at 59.56% for the last twelve months as of Q1 2023, showcasing its ability to maintain profitability despite costs. Moreover, revenue growth for the same period has been robust at 46.64%, indicating a strong sales trajectory.
InvestingPro Tips highlight that analysts are expecting net income and sales growth for the current year, with On Holding AG's gross profit margins deemed impressive. These insights suggest that the company's financials are aligning with the growth expectations that could justify the elevated earnings multiple. Moreover, the company's stock price movements have been quite volatile, which could present opportunities for investors with an appetite for risk.
For investors seeking to delve deeper into On Holding AG's financials and market predictions, InvestingPro offers additional tips, with a total of 13 tips available for this company. Utilize the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to these valuable insights that could further inform investment decisions.
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