Redburn downgrades Holding AG, business promising but shares overpriced By

Redburn downgrades Holding AG, business promising but shares overpriced By

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Thursday, an analyst at Redburn-Atlantic revised the firm’s stance on On Holding AG (NYSE:ONON), shifting from a “Buy” to a “Neutral” rating, while also adjusting the price target to $34.00 from a previous target. This change comes after observing a significant increase in the company’s share price, which has risen from $25 in late October 2023 to $33 recently.

The analyst noted that while the long-term business potential for On Holding remains promising, the current valuation reflects this optimism. The stock’s rapid price ascent to near the set target suggests that the upside potential is now limited. As a result, Redburn-Atlantic has moderated its view on the stock.

On October 24, 2023, Redburn-Atlantic had published a detailed report titled “Onwards and Upwards,” where they expressed a bullish outlook on On Holding. Since then, the share price has approached their target, indicating a swift market response to the positive analysis.

The analyst also highlighted that while the sportswear industry presents opportunities, it also poses challenges in 2024. The sector’s dynamics are a factor in the reevaluation of On Holding’s stock, suggesting that the current market conditions have been taken into account for the rating downgrade.

In summary, Redburn-Atlantic’s adjustment of On Holding’s rating to “Neutral” with a price target of $34.00 reflects the stock’s quick price rise and a balanced perspective on the potential risks and rewards in the sportswear industry moving forward.

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