Williams Trading has revised its price target for On Holding (ONON, Financial), adjusting it from $62 to $50 while maintaining a Buy rating on the stock. This adjustment is part of a broader reduction in estimates across the firm's retail coverage, driven by uncertainties surrounding the impact of tariffs on profit margins, pricing, and demand.
The firm has reduced the price-to-earnings multiple by an average of 20.4% to better reflect these uncertainties. They caution that many companies under their coverage might either abstain from providing forward guidance or retract existing forecasts due to these challenges.
Recent checks indicate that the imposition of an additional 145% tariff on Chinese goods has hindered product shipments to the U.S. This development poses significant challenges to sales and margin prospects for brands heavily dependent on Chinese manufacturing and U.S. sales, as highlighted in a recent analyst note. This situation adds another layer of complexity to the business environment for On Holding and similar retailers.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 26 analysts, the average target price for On Holding AG (ONON, Financial) is $61.42 with a high estimate of $85.52 and a low estimate of $49.66. The average target implies an upside of 50.71% from the current price of $40.76. More detailed estimate data can be found on the On Holding AG (ONON) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, On Holding AG's (ONON, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for On Holding AG (ONON, Financial) in one year is $52.67, suggesting a upside of 29.24% from the current price of $40.755. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the On Holding AG (ONON) Summary page.
