On Holding, a Swiss sports footwear manufacturer, has experienced a notable increase in its U.S.-listed shares following a price target increase from UBS Global Research.
The brokerage has raised its price target for On Holding's shares, citing ongoing sales momentum as a key factor that is likely to enhance investor sentiment. This positive outlook is supported by the company's strong performance in the U.S. direct-to-consumer market, where it has reported high-double-digit growth in the third quarter.
The confidence expressed by UBS in On Holding's ability to sustain sales growth and expand margins reflects a broader trend in the sportswear market, where brands like Hoka and On are capturing significant market share from established giants such as Nike.
With the majority of brokerages rating On Holding's stock as "buy" or "higher," and a median price target of $51, the company appears well-positioned for continued growth. The performance of On Holding's shares has been impressive, with a year-to-date increase of nearly 75%. This surge can be attributed to strong sales figures and a favorable market environment for sports footwear.
Investor sentiment surrounding On Holding is further supported by positive ratings from financial analysts, indicating optimism about the company's future prospects.
The competitive landscape in the sportswear industry is becoming increasingly challenging, with brands like On and Hoka making significant progress against traditional powerhouses such as Nike. On Holding's recent performance highlights the potential for growth in the sports footwear market, with its focus on direct-to-consumer sales proving effective in building a loyal customer base and enhancing brand visibility.
As competition intensifies, maintaining this momentum will be crucial for On Holding to sustain its market position and continue attracting investor interest.