Raymond James has revised its price target for On Holding (ONON, Financial), bringing it down to $54 from a previous target of $68, while maintaining a Strong Buy rating for the company's stock. This adjustment reflects concerns over the potential impact of tariff measures on the company's financial performance.
The firm highlighted that tariffs are anticipated to be a key topic during upcoming earnings discussions and will heavily influence the stock's performance narratives. However, Raymond James notes that companies might be hesitant to provide specific financial impact details due to the rapidly changing nature of government policies.
Should tariffs related to what has been termed "Liberation Day" become permanent, Raymond James foresees a considerable adverse effect on On Holding's gross margins and earnings per share (EPS). Additionally, such tariffs could lead to decreased consumer spending if inflation increases, further affecting the company's demand dynamics.
