On Holding’s Strong Position Amidst Market Challenges
Citigroup’s Upgrade of On Holding Stock
Citigroup has recently upgraded On Holding’s stock from “hold” to “buy,” reflecting confidence in its pricing power and unique market position. Despite lowering the price target from $65 to $60 per share, Citigroup predicts approximately a 33% upside from last Friday’s closing price of $45.03.
Performance in 2025
On Holding’s shares have experienced a 15% decline thus far in 2025. Nevertheless, analyst Paul Lejuez emphasizes that the company’s strong momentum and growth trajectory could allow it to stand out in the competitive apparel and footwear markets.
Impact of Global Trade Environment
Given the global trade environment, particularly the tariffs initiated during President Donald Trump’s administration, there are additional pressures facing the industry. Lejuez has adjusted his annual earnings forecast for On Holding due to these currency headwinds but maintains optimism about its future growth.
Swiss Brand Advantage
As a brand based in Switzerland, On Holding may benefit from being perceived more positively in international markets compared to its American competitors. This positive perception could be a crucial asset as American brands face increasing scrutiny amidst ongoing trade tensions.
Consumer Backlash Against American Brands
Analysts suggest that a potential backlash from consumers, especially in countries like China, could adversely affect American brands such as Nike and Lululemon. Lejuez posits that this consumer sentiment could inadvertently bolster On Holding’s sales as it positions itself as a viable alternative.
Pricing Power and Brand Reputation
On Holding’s strong brand reputation could provide it with the necessary leverage to pass on increased costs from tariffs to consumers more effectively than its competitors. This pricing power will be vital for maintaining profitability during turbulent economic conditions.
Future Expectations and Market Share Growth
Lejuez emphasizes that as disruptions from the tariff situation continue to evolve, On Holding stands in a strong position to expand its market share in key regions such as Asia-Pacific and Europe, Middle East, and Africa. This positioning could lead to significant opportunities for growth against established American players.
