On Holding rated Buy with $46 target despite recent stock drop due to CEO exit and tariff worries

On Holding's stock has fallen about 40% from its peak due to softer FY2026 revenue guidance, the unexpected CEO departure, and tariff concerns. Despite this, the company maintains strong fundamentals with a premium brand, 63% gross margins, and nearly half of sales direct-to-consumer. Growth prospects remain solid, supported by LightSpray technology, rapid expansion in Asia-Pacific and apparel segments, and a strong balance sheet. Analysts see a 29% upside to a $46 price target, highlighting On Holding's potential for long-term value creation.