On Holding AG (NYSE:ONON) shares fell in early trading on Wednesday, after the Swiss sportswear company reported third-quarter results. Here are some key analyst takeaways:
- KeyBanc Capital Markets analyst Ashley Owens maintained an Overweight rating and raised the price target from $37 to $42.
- Cantor Fitzgerald analyst John Kernan reiterated an Overweight rating and price target of $46.
Check out other analyst stock ratings.
KeyBanc Capital Markets: On Holding’s quarterly results were mostly driven by wholesale timing, while DTC (direct-to-customer) fell short of expectations.
He noted that DTC underperformed due to:
- Softer online traffic
- The move of two stores (Miami and Munich) into the fourth quarter
APAC (Asia Pacific) moderated earlier than expected. This seems to be a "deliberate choice to protect brand health," the analyst stated.
Management expects growth to accelerate in the fourth quarter, led by DTC, while investments in 2026 "should begin to drive SG&A leverage next year," he further wrote.
Cantor Fitzgerald: Although On Holding’s gross margin expanded by 118 basis points (bps), excluding tariff refunds, adjusted EBITDA margin declined by 73 bps, representing the first year-on-year decline in nine quarters, Kernan said. He added that the "key takeaway" is that the company’s incremental EBIT margin is likely to improve through fiscal 2027, driven mostly by operating expense leverage.
The analyst expects the narrative to shift from gross margin expansion in fiscal 2026 to operating leverage in fiscal 2027.
Management indicated that growth is likely to accelerate in the fourth quarter, with DTC returning to the year-to-date run-rate of about 29% in constant currency terms, "which supports gross margin but also raises Selling and Distribution expenses," he further wrote.
ONON Price Action: Shares of On Holding had declined by 1.01% to $34.35 at the time of publication on Wednesday.
Image: Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
