ONON Stock Surges After Strong Q2 Results Revealed
ON Holding (NYSE:ONON) is making waves in the stock market today as it announced a 28% increase in revenue for the second quarter compared to the same period last year. The Switzerland-based company, known for its athletic footwear and sports apparel, is also gaining popularity as a breakout search term. ONON stock is up by 5% today.
On Holding’s Q2 Results
In the second quarter of 2024, On’s revenue soared by 28% to 567.7 million Swiss francs compared to Q2 of 2023. Additionally, its EBITDA, excluding certain items, saw a 45% year-over-year increase to 90.8 million Swiss francs. Impressively, the company’s net income surged by 834% to 30.8 million Swiss francs.
Despite the remarkable growth, On Holding did not raise its full-year guidance. It still anticipates a 30% increase in revenue, excluding currency changes, and maintains a gross margin expectation of around 60%.
“Strong Momentum”
Co-CEO and CFO Martin Hoffmann highlighted On’s brand’s “strong momentum” across various channels, regions, and products. The company has also received positive feedback and coverage recently. Co-founder and Executive Co-Chairman David Allemann mentioned partnerships with actress Zendaya and the introduction of LightSpray technology, which uses thermoplastic to reduce the weight of running shoes by 100 grams.
ONON Stock: Upbeat Coverage Initiation
Investment bank Raymond James recently initiated coverage of ONON stock with an “outperform” rating and a $46 price target. The bank believes that On Holding’s strong brand, innovative products, and global expansion will continue to drive positive momentum.
Analysis:
ON Holding’s strong Q2 results and positive outlook indicate a promising future for the company and its stock. The significant revenue growth, impressive EBITDA, and innovative technologies like LightSpray position On Holding as a key player in the athletic footwear and sports apparel industry. Investors may consider ONON stock as a potential opportunity for growth and positive returns based on the upbeat coverage and rating from Raymond James.