UBS Raises On Holding (ONON) Target, Cites Growth Despite EPS Loss

On Holding AG (NYSE:ONON) is one of the best high growth consumer stocks to buy now. On August 13, UBS analyst Jay Sole maintained his Buy rating on On Holding AG (NYSE:ONON), and raised the price target from $75 to $79. Sole’s implied upside for the stock is now a whopping 74.6%.  Wall Street’s average implied upside for the stock stands at a solid 46.14%.

Sole sees the sportswear company’s valuation multiples expanding. He also believes that the company will continue to beat earnings estimates. The company has seen robust growth as a result of brand recognition, innovative design, and quality products.

The Swiss sports company reported revenue of $907.06 million, up 44.5% year-over-year, and beating Wall Street estimates of $885.91 million. However, the company reported a loss for the quarter, with the EPS of -$0.113, compared to analysts’ estimates of  $0.241. The loss was a result of foreign exchange losses and increased operating losses. This was a surprise because the company has seen expanding margins over the last few years.

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Disclosure: None.