BofA Slashes PT on On Holding (ONON) to $62 From $73, Keeps a Buy Rating

On Holding AG (NYSE:ONON) is one of the best large cap stocks with more than 50% upside. On October 6, BofA analyst Thierry Cota slashed the price target on On Holding AG (NYSE:ONON) to $62 from $73 while maintaining a Buy rating on the stock.

The firm told investors that it expects 32% organic sales growth in fiscal Q3, as well as 21.5% in the “key” Americas region.

The analyst further stated that the risk perception on On Holding AG (NYSE:ONON) may rise, reasoning that if the company’s long-term outlook reflects team sports development, potentially presented at a CMD next year, it would be slower growth than running and come face to face with strong Nike and Adidas positions.

Cota thus reduced the price target on On Holding AG (NYSE:ONON) to take into account the risks associated with Nike and product diversification.

On Holding AG (NYSE:ONON) is involved in the development and distribution of sports products, including apparel, footwear, and accessories. The company sells its products across the globe through global distributors, independent retailers, an online presence, and its stores.

While we acknowledge the potential of ONON as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.