On Holding Shares Rise Despite Analyst Doubt Over Investor Day Targets
Shares of On Holding (NYSE:ONON) surged as much as 11% following the company's investor day, where it outlined ambitious financial targets for 2026-29. The Swiss running shoe maker set goals including high-teens constant-currency sales growth and a gross margin above 65%, alongside authorizing a $1 billion share buyback through 2029. However, Jefferies analysts expressed skepticism about the feasibility of these targets, noting that On's Americas segment grew only 4.5% in Q2 with third-quarter guidance calling for slower growth than previously seen. The firm highlighted inventory levels outpacing sales and concerns over heavy reliance on paid traffic to drive website visits. Jefferies downgraded its view, maintaining an Underperform rating with a $20 price target, arguing that the buyback does not address underlying demand issues or discounting trends expected in 2027.
Tickers: $ONON
Topics: analyst skepticism buyback authorization investor day