KeyBanc lowers On Holding’s price target amid $70.43M in Q1 tariff costs but maintains Overweight rating on growth outlook.
KeyBanc reduced its price target for On Holding (ONON) to $43 from $58, citing tariff pressures from Vietnam sourcing concentration. The firm maintained an Overweight rating, emphasizing the company’s achievable 23%-plus growth guidance despite near-term headwinds.
On Holding reported Q1 2026 revenue of $1.07B, beating estimates by 22%, with a 64% gross margin and 44% year-over-year growth in Asia-Pacific. However, the company absorbed $70.43M in tariffs during the quarter, impacting profitability.
ONON shares closed at $33.83 on May 12, down 27% year-to-date. The target cut reflects cost pressures rather than weakening brand momentum, according to the firm.