On Holding (NASDAQ:ONON), a Swiss shoemaker, has been chosen as a top pick for 2024 and added to the Conviction List by Needham.
Analysts pointed out that On Holding’s current market valuation does not adequately represent the company’s unique growth trajectory. The increased short interest in the stock over the last six months is seen as a potential opportunity, especially as ONON’s stock has dropped about 30% from its peak in August.
Despite On’s deeper discounts during the holiday season, the analysts perceived this strategy as a proactive response to competitive market pressures. They noted that these developments have been factored into the company’s guidance for the fourth quarter.
On Holding takes the place of Chewy (NYSE:CHWY) on the Conviction List. Needham rated ONON as a buy, setting a price target of $40.
This endorsement by Needham occurs shortly after Piper Sandler also named ONON as a Top Pick. According to a note from Piper Sandler, On Holding’s robust product pipeline is expected to enhance its credibility in the running sector, where it has already made significant strides in 2023. The company is also poised to expand its presence in various wearing occasions with a strong lifestyle offering.