On Holding AG (NYSE:ONON), a Switzerland-based sportswear company, is known for its innovative footwear and apparel. The company has gained attention for its rapid growth and strong market presence. Despite recent positive financial results, Jefferies downgraded ONON from Buy to Underperform on August 13, 2025, when the stock was priced at $49.81, as reported by TheFly.
The downgrade comes after ONON's impressive second-quarter performance, which saw a 32% year-over-year increase in net sales, reaching CHF 749.2 million. This growth exceeded the consensus forecast of CHF 703.8 million. The company also raised its full-year guidance, boosting investor confidence and leading to a 10% increase in its share price post-earnings.
Despite the positive financial results, ONON's stock is still down 10.2% for the year. The stock has shown resilience, rebounding from the $44 level and surpassing the 320-day moving average. Analysts remain optimistic, with 19 out of 22 rating the stock as a "buy" or "strong buy," while three suggest a "hold."
ONON's second-quarter adjusted EBITDA exceeded consensus estimates by 17.9%, driven by significant net sales growth. The company reported an adjusted EBITDA margin of 18.2%, outperforming the consensus of 16.4%. Management has revised their 2025 guidance, projecting at least 31% sales growth in constant currency terms.
Following these announcements, ONON's shares rose by 9.43% to $50.03. Despite the Jefferies downgrade, analyst Richard Edwards from Goldman Sachs maintained a Neutral rating with a price target of $64. The stock's current movement reflects a rebound, with a market capitalization of approximately $16.13 billion and a trading volume of 19,371,085 shares on the NYSE.
