On Holding Ag (ONON) Q1 2024 Earnings Preview: Morgan Stanley Analyst Anticipates EPS Upside

Morgan Stanley's Alex Straton raised their price target on On Holding Ag (NYSE: ONON) by 9.4% from $32 to $35 on May 6, 2024. The analyst maintained their Strong Buy rating on the stock.

Straton's price target increase reflects their positive outlook on On Holding Ag's future performance. The company is scheduled to release its Q1 2024 earnings on May 14, and Straton believes there is minimal risk of FY 2024 guidance reductions for the Consumer Cyclical (Retail Softlines) sector. They anticipate another quarter of nearly universal earnings per share (EPS) upside for the group.

In a note to investors, Straton stated, "Although positioning has become incrementally bearish on fears of a demand slowdown, to us, this means the risk-reward skews to the upside in the near-term among names in the group."

Alongside their rating update for On Holding Ag, Straton also made price target adjustments for several other companies in their portfolio. Foot Locker Inc saw a 23.1% decrease in their price target from $26 to $20, while Gap Inc's price target was raised by 5.3% from $19 to $20. Ross Stores Inc and Burlington Stores Inc also had their price targets adjusted, with a 1.2% decrease from $161 to $159 for Ross Stores Inc and a 6.4% decrease from $233 to $218 for Burlington Stores Inc. Straton maintained their Hold rating on Foot Locker Inc and their Strong Buy rating on both Ross Stores Inc and Burlington Stores Inc.

The consensus among analysts is that On Holding Ag is expected to deliver earnings per share (EPS) of $0.57 for the upcoming year. If this forecast holds true, it would signify a significant 99.5% year-over-year increase in EPS.

Looking at On Holding Ag's recent stock performance, it has shown resilience. Since the last quarterly report on December 31, 2023, the stock price has risen by 26.2%. However, on a year-over-year basis, the stock is down 1%. It is worth noting that during this period, On Holding Ag has trailed the S&P 500, which has experienced a decline of 25.2%.

Morgan Stanley analyst Alex Straton is ranked in the top 24% of Wall Street analysts by WallStreetZen, out of a total of 4,575 analysts. Straton specializes in the Consumer Cyclical sector and has an average return of 6.2% with a win rate of 52.8%.

On Holding Ag, headquartered in Zurich, Switzerland, is a company that develops and distributes athletic footwear, apparel, and accessories. The company's products are available in 6,000 retailers across 55 countries. On Holding Ag holds a significant market share in the running shoe industry, with 40% in Switzerland and 10% in Germany. The company was founded in 2010 and has steadily expanded its presence in the global market.

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