KeyBanc cuts On Holding price target to $43 citing tariff costs but keeps Overweight rating

KeyBanc lowered its price target for On Holding from $58 to $43 due to tariff-related cost pressures, while maintaining an Overweight rating. The Swiss sportswear brand beat Q1 2026 revenue estimates by 22%, driven by strong growth in Asia-Pacific. Despite near-term tariff headwinds and a stock decline of about 27% year-to-date, KeyBanc views the company's 23%+ growth guidance as conservative and expects potential tariff relief to boost upside. Investors should weigh the premium brand's growth momentum against tariff risks and valuation concerns.