The shares of the Zurich company On climbed to just under $ 39 after the IPO in mid-September – the issue price on September 15 was $ 24. Since then, the stock traded on the New York Stock Exchange has come back to a good $ 30 level. The market capitalization is $ 10 billion.
On was founded in 2010 by former top triathlete Olivier Bernhard and running enthusiasts David Allemann and Caspar Coppetti. Thanks to the cushioning technology they have developed, the On running shoes with the distinctive sole are supposed to “walk on clouds”, as they say. The 20-time Grand Slam winner Roger Federer got on board in 2019 and worked on the development of a tennis shoe.
The share is now backed by analysts. So on Monday Morgan Stanley and JPMorgan will start covering with “Overweight”. The target price for twelve months is at Morgan Stanley at 38 dollars, at JPMorgan at 37 dollars. This implies an upside potential of more than 23 percent.
The analysts at Stifel also believe in On Running. You pick up coverage with a “Buy” rating and a price target of $ 36. Goldman Sachs is more skeptical. Its analysts give the share a “neutral” rating and a target price of 32 dollars.
A healthy skepticism is probably also appropriate. Sales of On, which also sells sportswear and accessories, shot up by 59 percent to 425.3 million francs last year, and adjusted operating profit (Ebitda) increased by 67 percent to 49.8 million francs. And: In the first six months of this year, the trend brand achieved sales revenues of 315.5 million francs and an Ebitda of 47.3 million francs. However, this only resulted in a net profit of less than four million francs.
(cash)
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