On Holding To Gain From Pace Of Product Introductions & Margin Expansion In Q1: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Cristina Fernández maintained an Outperform rating on On Holding AG (NYSE:ONON) with a price forecast of $37, ahead of its Q1 results on May 14. Fernández anticipates strong sales growth driven by new product introductions across various categories and significant margin expansion. The analyst projects an 18.5% year-over-year sales growth to CHF 498 million and an EBITDA of CHF 76 million, indicating an EBITDA margin expansion to 15.3%. The company's focus on direct-to-consumer sales and expansion into new markets and categories is highlighted as key growth drivers.
May 07, 2024 | 6:35 pm
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POSITIVE IMPACT
On Holding AG is expected to report strong Q1 results with significant sales growth and margin expansion, driven by new product launches and a strategic focus on direct-to-consumer sales.
The positive outlook from Telsey Advisory Group, including an unchanged price forecast of $37, suggests confidence in On Holding AG's growth trajectory. The anticipated strong start to the year, driven by product introductions and margin expansion, is likely to positively impact investor sentiment and the stock price in the short term. The detailed projections of sales growth and EBITDA improvement further support the potential for stock appreciation.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100