On Holding jumps after Citi says the trendy Swiss sneaker brand’s pricing power can help it weather tariffs
Citi says the cult favorite shoe and apparel company can likely pass on higher costs to shoppers.
On Holding shares popped as much as 3% Monday as Citibank gave the Swiss sneaker maker a fresh upgrade, lifting its rating to “buy” from “neutral."
In a note Monday, analyst Paul Lejuez said On could stand out as an outlier in the sneaker and apparel space, with loyal customers more willing to absorb higher prices tied to tariffs. He also pointed to On’s Swiss roots as a potential moat, especially as global shoppers turn a cold shoulder to American brands like Nike and Lululemon.
On has been riding a hot streak, fueled by the “chunky shoe” trend that’s boosted brands like Hoka (owned by Uggs parent Deckers), Asics, and New Balance.
“As the fastest-growing brand in athletic and softlines with major brand heat — and crucially, a Swiss identity — we believe ONON is one of the best positioned to navigate the current messy tariff environment,” Lejuez wrote. “With potential backlash brewing against American brands overseas, On could swoop in and grab market share across APAC and EMEA from heavyweights like Nike.”
Still, the road ahead will be bumpy: Lejuez also cut On’s price target to $60 a share from $65 and trimmed his full-year forecast, flagging currency headwinds and ripple effects from tariffs.
On shares have surged more than 40% over the past year.
