On Holding (ONON) is poised for industry-leading sales growth and upside earnings surprises, owing to its continued focus on innovation, performance, direct-to-consumer selling, and its commitment to maintaining a premium, full-price brand image, UBS Securities said in a note.
Performance running should be a key growth driver for the company as it continues its largest innovation cycle to date and rolls out its new superfoam technology across nearly all major running franchises by the end of 2027, according to the Tuesday research note.
UBS further said it expects On's sales to increase 19.5% and 18.2% year-on-year ex-forex in 2027 and 2028, respectively.
The firm raised its fiscal 2026 EPS estimate by about 8%, reflecting the company's gross margin outperformance, driven by tariff refunds and ongoing underlying margin improvement.
UBS lowered its price target to $65 from $73, reflecting increased risk from the highly promotional environment, while maintaining its buy rating.
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