On Holding AG (NYSE: ONON) Stock Target Lowered After Q2 Revenue Miss, DTC Channel Shows Strength

• Analyst Joseph Civello of Truist Financial adjusted the price target for On Holding AG (NYSE: ONON) to $40.00 from $48.00, implying a potential upside of 29.41% from its current price.
• The company's stock declined by 20.29% following a Q2 revenue miss and a revised full-year 2026 revenue growth guidance to the "low 20s" percent range from at least 23%.
• While the wholesale channel saw limited growth of 4.8%, the direct-to-consumer (DTC) channel demonstrated robust performance with sales surging by 26.0%, now representing a record 45.7% of total sales.

On Holding AG (NYSE: ONON) is a Swiss company specializing in performance sportswear, particularly known for its running shoes. The company sells its products through other retailers and directly to customers via its own stores and website. It competes in a market with established giants like Nike and Adidas.

Following recent performance news for On Holding AG, analyst Joseph Civello of Truist Financial adjusts the stock's price target. The target is lowered to $40.00 from a previous $48.00. Based on the stock's price of $30.91 at the time, this new target represents a potential upside of 29.41% for investors.

This adjustment comes as On Holding AG experiences a significant stock price decline of 20.29%, dropping to $30.91. The selloff follows the company's second-quarter earnings report, where it missed revenue estimates. The company now lowers its full-year 2026 revenue growth guidance to the "low 20s" percent range from at least 23%.

The revenue miss is linked to a slowdown in the company's wholesale channel, which is when it sells products to other retailers. This segment's sales grew by only 4.8%. On Holding AG states it intentionally limited some wholesale growth to protect its brand strength and avoid heavy discounting seen with competitors.

In contrast, the direct-to-consumer (DTC) channel shows strong momentum, with sales surging by 26.0%. This channel, which includes sales from the company's own stores and website, now accounts for a record 45.7% of total sales. This growth helps offset the weakness in the wholesale business and maintain healthy profit margins.