Stifel reaffirmed its Buy rating on On Holding AG (NYSE: ONON) on Tuesday, citing long-term growth potential despite recent challenges. The stock, trading near its 52-week low of $29.26, has fallen roughly 37% over the past six months to $29.51.
The reaffirmation follows On Holding’s Q2 2026 earnings report, which included a downward revision to 2026 revenue guidance and a miss on revenue estimates. The company, which operates brands including HOKA and On, has faced headwinds in its U.S. wholesale channel, prompting several analysts to reduce price targets.
UBS lowered its price target to $73 from $83 while maintaining a Buy rating. BofA Securities cut its target to $46 from $52, and Telsey adjusted its target to $43 from $51. Stifel also reduced its target to $41 from $60, reflecting concerns over revenue growth and inventory management.
On Holding reported a gross profit margin of 64.8% and 18.5% revenue growth over the last twelve months. However, the company’s performance in the youth lifestyle segment has softened. On was recognized as the most popular brand in 3.3% of checks, up 0.8 percentage points year-over-year, while HOKA’s share declined by 1.3 percentage points to 0.5%. Analysts noted a mismatch in occasion, price, and demographics as contributing factors.
Stifel emphasized that both On and HOKA remain underpenetrated in the youth lifestyle segment, with domestic athletic specialty and sporting goods channels expected to drive growth over the next five years. The firm also maintained a Buy rating on On Holding’s parent company, Deckers Outdoor Corporation.
Telsey highlighted a reduction in wholesale sell-in by On Holding to manage inventory amid a slowdown in North American sales. Raymond James and Baird removed On Holding from their favorites and Fresh Pick lists, citing concerns over the U.S. wholesale channel.
