Investment analysts at Needham & Company LLC have reiterated their “buy” rating for ON Holding AG (NYSE: ONON), confirming a price target of $52.00 per share. This reaffirmation, issued in a research report on January 10, 2024, suggests a potential upside of 16.03% from the stock’s previous closing price. The analysis comes amid a mixed sentiment surrounding the stock, which has seen various ratings adjustments from other financial institutions.
Analyst Ratings and Price Targets
Recent reports indicate that analysts are reassessing their positions on ON’s stock. For instance, Zacks Research downgraded the company from a “strong-buy” to a “hold” rating on January 12. Meanwhile, the Goldman Sachs Group raised its target price from $50.00 to $52.00 while maintaining a “neutral” rating in a report dated November 13, 2023. The UBS Group also reiterated a “buy” rating on January 5, highlighting ongoing positive sentiment.
In contrast, Evercore ISI revised its price objective down from $68.00 to $50.00, while maintaining an “outperform” rating on the stock. Additionally, Singular Research upgraded ON to a “strong-buy” rating as of November 17, 2023. Overall, three analysts rated the stock as a “strong buy,” seventeen assigned a “buy” rating, while three suggested a “hold” and two classified it as a “sell.” This gives ON a consensus rating of “Moderate Buy” with a target price averaging $59.86, according to MarketBeat.com.
Current Market Performance
As of January 10, 2024, ON’s stock opened at $44.82. The company’s fifty-day moving average price stands at $46.55, while the 200-day moving average is at $45.10. ON has experienced a twelve-month low of $34.38 and a high of $64.05. Financial indicators show a current ratio of 2.55, a quick ratio of 2.05, and a debt-to-equity ratio of 0.28. With a market capitalization of $28.14 billion, its price-to-earnings (P/E) ratio stands at 58.20, and the price-to-earnings growth (P/E/G) ratio is 1.35. The stock’s beta is recorded at 2.15, suggesting a higher volatility compared to the market.
Institutional investors have shown considerable interest in ON, with several hedge funds adjusting their positions recently. For example, Washington Trust Advisors Inc. acquired a new position valued at approximately $29,000 in the second quarter. Additionally, United Financial Planning Group LLC purchased shares worth about $42,000 during the third quarter. Other notable movements include Horizon Investments LLC, which invested approximately $44,000, and GAMMA Investing LLC, which increased its position by an impressive 5,888.9%, now holding shares valued at $46,000.
Overall, hedge funds and institutional investors collectively own 36.39% of ON’s stock, indicating strong institutional confidence in the company’s future prospects.
Recent Developments Affecting ON
This week, ON has attracted attention for several reasons. Analysts have expressed positive sentiment following multiple reaffirmations and increased price targets, such as BTIG’s “buy” rating with a target of $70.00, which represents the highest upside among recent ratings. Additionally, Frank Sluis, a seasoned executive, has been appointed as the new Chief Financial Officer, a move that typically boosts investor confidence by enhancing management effectiveness and communication.
Despite the positive outlook, analysts are also reassessing ON’s valuation in light of its high P/E ratio of approximately 58 and a PEG ratio of around 1.35. While these figures reflect strong growth potential, they may also raise concerns for investors considering new positions. Furthermore, ON’s stock has faced short-term pressure, recently underperforming against broader market trends, indicating potential technical weakness.
As ON continues to navigate these challenges and opportunities, investors will be closely monitoring developments that may impact its stock performance. The company, headquartered in Zurich, Switzerland, is recognized for its innovative performance footwear and apparel, appealing to both serious athletes and casual consumers alike.
