"KeyBanc lowered its price target on On Holding to $43 from $58 while keeping its Overweight rating, framing the move as a recalibration tied to tariff exposure rather than a break in the long-term growth thesis. The firm continues to view On Holding's reiterated 23%-plus constant currency growth guidance as conservative if current demand trends persist. That language is unusually bullish for a downgrade-in-target call."
"KeyBanc flagged that tariff refunds could serve as incremental upside if and when they materialize, a scenario On Holding's own guidance explicitly excludes. The reset reflects tariff-related cost pressure rather than a deteriorating brand. For investors weighing the premium athletic name, the message is mixed: near-term headwinds are real, but the underlying brand momentum still has Wall Street's attention."
"On Holding's Q1 2026 revenue came in at $1.07 billion, beating estimates by 22%, with gross margin of 64%. Asia-Pacific is the standout, with revenue up 44% year-over-year. On Holding also disclosed approximately $70.43 million in IEEPA tariffs absorbed during the quarter, with co-founders David Allemann and Caspar Coppetti stepping back in as Co-CEOs."
"Tariff exposure is the central issue. Roughly 90% of On Holding's footwear and 65% of apparel are sourced from Vietnam, and the company's full-year outlook embeds a 20% incremental tariff rate on Vietnam imports. The valuation backdrop also matter"
KeyBanc reduced its price target for On Holding to $43 from $58 but maintained an Overweight rating. The change reflects a recalibration tied to tariff exposure rather than a break in the long-term growth thesis. The firm still expects On Holding’s reiterated 23%+ constant currency growth guidance to be conservative if demand trends hold. KeyBanc also noted that tariff refunds could provide incremental upside if they materialize, though On Holding’s guidance excludes that possibility. On Holding reported a Q1 2026 revenue beat of $1.07 billion, up 22% versus estimates, with gross margin of 64%. Asia-Pacific revenue rose 44% year over year, and the company absorbed about $70.43 million in IEEPA tariffs during the quarter.
Read at 24/7 Wall St.
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