UBS analysts reiterated a Buy rating and a $63 price target for On Holding AG (NYSE:ONON), emphasizing the brand’s robust growth trajectory and significant untapped potential in the global athletic wear market. With forecasted five-year sales and earnings per share (EPS) compound annual growth rates (CAGR) of 22% and 43%, respectively, On is positioned to become one of the fastest-growing athletic wear brands worldwide.
A key driver of On’s growth is its rising brand awareness. According to UBS Evidence Lab’s latest global athletic wear survey, On’s aided brand awareness has climbed steadily over the past four years, reaching 13% in 2024, compared to just 5% in 2021. Despite this progress, On’s awareness level remains well below major competitors like Nike (91%), Puma (74%), and Jordan (59%), signaling substantial room for expansion.
The brand’s growing recognition is expected to translate into increased market share, with momentum building through 2025. UBS believes that as On continues to deliver strong earnings and outperforms market expectations, investor confidence will grow, pushing the stock closer to the $63 target.