BWG Global Downgrades View on On Holding AG's (ONON) to Mixed from Positive

On Holding AG’s (NYSE:ONON) is one of the best stocks to buy with over 50% upside potential. On October 28, On Holding AG’s (NYSE:ONON) view was downgraded to Mixed from Positive by BWG Global, who cited checks reflecting softening trends quarter-over-quarter.

Similarly, Goldman Sachs also lowered the price target on On Holding AG (NYSE:ONON) to $50 from $57 while keeping a Neutral rating on the stock. The firm told investors that since the modern market structure is geared more towards DTC and online, it should allow the company to undergo faster revenue scaling compared to Nike or Adidas.

However, the firm added that a longer-term revenue estimate of CHF19B is demanding with a lack of factors such as team sport exposure. Goldman Sachs also adjusted its model to take into account a more negative currency impact of a stronger CHF vs. USD.

On Holding AG (NYSE:ONON) also received a rating update from Raymond James analyst Rick Patel on October 21, who slashed the price target on the stock to $55 from $66 and set an Outperform rating on the stock. The analyst told investors that Softlines and Digital Commerce names are experiencing rising revenue estimates going into Q3, which hints at an improvement in consumer momentum.

Tariff risk is still the key variable according to the analyst, as higher China tariffs may exert pressure on margins in a backdrop where FX shifts provide modest relief to Pound- and Euro- exposed companies.

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.

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