Stifel reiterated its buy recommendation for On Holding AG on Tuesday, though it cut its price target to $41 from $60 following the company's second-quarter earnings miss and downward revision to full-year guidance.
On Holding's shares traded near their 52-week low of $29.26, down roughly 37% over the past six months, at $29.51. The company reported a trailing twelve-month revenue increase of 18.5% and maintained a gross margin of 64.8%.
Stifel's decision followed broader analyst downgrades after On Holding missed revenue estimates for the quarter and reduced its 2026 revenue outlook. UBS lowered its target to $73 from $83 while maintaining a buy rating, citing disappointing quarterly results. BofA Securities reduced its target to $46 from $52, aligning with expectations for product rollouts in late 2026 and early 2027.
Telsey cut its target to $43 from $51, attributing the move to a planned reduction in wholesale sales aimed at managing inventory amid a slowdown in North American demand. Raymond James and Baird removed On Holding from their favored lists due to concerns over the U.S. wholesale channel.
Stifel also noted a decline in style mentions for both On and HOKA brands, suggesting a misalignment in occasion, pricing, and demographic appeal. The firm highlighted specialized domestic sports retail and general sporting goods as key channel drivers over the next five years.
On Holding operates under the ONON ticker on the New York Stock Exchange and is owned by Deckers Outdoor Corporation, which Stifel continues to rate as a buy.
