Hot Off IPO, On Prompts Mixed Forecasts From Analysts

On the heels of its IPO in September, analysts are split on their recommendations regarding On, the Swiss running brand. Backed by tennis champion Roger Federer, On sold 31.1 million shares for $24 each in its IPO, which brought the company’s value to over $6 billion, Reuters reported. In the wake of the IPO, analysts are making recommendations on whether or not to buy shares of the company. On Monday, Stifel Analyst Jim Duffy recommended that investors purchase shares of On, citing a “unique premium brand with open-ended growth opportunities in the $300 billion and growing global performance/lifestyle footwear and apparel market.” “We believe brand strength and extensibility will support strong growth and justify a premium multiple for On shares for multiple years, and we view On shares as a solid core holding for growth investors,” Duffy wrote in a note. In his investment thesis, Duffy predicting that On will exhibit strong, long term growth for “multiple years,” making it a strong asset for investors in the future. In addition to On’s position as a globally recognized brand, Duffy highlighted On’s broad distribution strategy, potential for greater profitability, and potential for continued brand momentum with more consumers. In its filing with the SEC, On described itself

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