On Holding shares climbed 11% after the company unveiled a $1 billion buyback and long-term growth targets, though analysts at Jefferies warned that slowing sales growth and heavy discounting suggest the company's ambitious 2029 goals may be difficult to reach.
On Holding shares surged 11% after setting ambitious 2026-29 targets and a $1B buyback, though Jefferies questioned the achievability.
On Holding shares surged 11% Tuesday following the announcement of aggressive 2026-2029 financial targets and a $1 billion share buyback program. Despite the market optimism, Jefferies analysts issued a note of caution, questioning the achievability of the company's growth projections given recent deceleration in the Americas segment and rising inventory levels.
Jefferies analysts argue that the company's targets require a sharp reacceleration in growth that contradicts recent trends, such as slowing sales in the Americas and high inventory levels that have led to significant retail markdowns.