UBS has reiterated a Buy rating on On Holding AG (NYSE: ONON) stock and maintained a price target of $85.00, which translates to an approximate 78% upside from the most recently cited share price of $47.77. The firm said its market checks point to continued strong engagement from consumers, a trend UBS expects to translate into near-term sales outperformance.
Specifically, UBS projects that On Holding will post a fourth-quarter sales result that beats expectations by 50 to 100 basis points on an ex-currency basis. That outlook is presented alongside the company’s recent top-line momentum, with revenue expanding 33.3% over the last twelve months.
Analyst consensus data from InvestingPro indicates On Holding is viewed as slightly undervalued by the analyst community, with a consensus recommendation score of 1.63 - classified as Strong Buy under that dataset.
Looking to fiscal 2026, UBS anticipates the company will reiterate an ex-currency sales growth guide of roughly 23% and will provide an adjusted EBITDA margin target in the range of 18.0% to 18.5%. UBS noted that these metrics would be in line with market expectations. Underpinning these projections is On Holding’s sustained gross profit margin, which stands at 62.4% and supports the company’s ability to reach the stated profitability thresholds.
UBS outlined what could drive upside and downside to its view. Upside could emerge if On Holding issues a fiscal 2026 top-line guide that is modestly stronger than current forecasts. Conversely, UBS warned that downside could materialize if investors demand visible strength across multiple profit-and-loss line items - including faster Americas revenue growth, improved gross margins, and tightened selling, general and administrative expenses - despite an underlying bearish sentiment among some market participants.
The firm also emphasized On Holding’s balance-sheet position as a mitigating factor. The company reported having more cash than debt and a current ratio of 2.55, offering a degree of resilience if operating conditions prove uneven.
Market-implied volatility is another consideration. Options traders are pricing in a potential share move of plus or minus 10.1%, slightly below the historical average implied move of plus or minus 10.7%. UBS concurred that shares may be subject to heightened swings, a view reinforced by the stock’s beta of 2.15, which indicates greater sensitivity to market movements compared with the broader market.
Investors should also note the near-term earnings calendar: On Holding’s next quarterly report is scheduled for March 3, which the article characterizes as just 12 days away. For market participants seeking additional analysis, InvestingPro provides a Research Report covering On Holding as part of its coverage of over 1,400 U.S. stocks.
Other analyst activity and corporate updates
Several other research houses and company developments were highlighted alongside UBS’s call. On Holding has appointed Frank Sluis as its incoming Chief Financial Officer, with his tenure set to begin in May 2026. That appointment follows the company’s decision to separate the CEO and CFO functions, roles that were previously combined under Martin Hoffmann.
On the broker side, Goldman Sachs upgraded On Holding to a Buy rating and raised its price target to $59.00. Bernstein reiterated an Outperform rating and set a $70.00 price target, citing robust operational results. Stifel maintained a Buy rating and a $60.00 price target, noting the new CFO appointment. KeyBanc lowered its price target to $58.00 while retaining an Overweight rating, attributing the change to recent stock underperformance. These varied views illustrate a range of analyst perspectives on the company’s near-term trajectory and strategic changes.