On Holding AG (ONON) PT Raised to $45 at Needham

Needham analyst Anna Andreeva raised the price target on On Holding AG (NYSE: ONON) to $45.00 (from $40.00) while maintaining a Buy rating.

The analyst commented, "Shares were lagging into the print, and On beat 1Q24 on sales (CC in DTC and Americas the same as in 4Q23, and this is despite the holiday promos) and margins (GM's up well ahead of the Street on the mix shift to DTC/efficient inventory management). Company is pleased with momentum QTD in both DTC and Wholesale and especially across key styles (we model 2Q24 reported sales +25%, slightly below on CC--Wholesale is expected to step up sequentially given lesser impact from EMEA door exits, although DTC should be slightly lower), with acceleration into 2H24 (compares ease, strength in innovation pipeline, FX headwind wanes). Raise est., PT (to $45) and reiterate as top pick; optimization in Atlanta warehouse is creating modest shortages in product allocation, which is being rectified by air shipping some product from the LA DC."

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