BofA Slashes PT on On Holding (ONON) to $62 From $73, Keeps a Buy Rating

On Holding AG (NYSE:ONON) is one of the best large cap stocks with more than 50% upside. On October 6, BofA analyst Thierry Cota slashed the price target on On Holding AG (NYSE:ONON) to $62 from $73 while maintaining a Buy rating on the stock.

Why On Holding AG (ONON) Surged Yesterday

The firm told investors that it expects 32% organic sales growth in fiscal Q3, as well as 21.5% in the “key” Americas region.

The analyst further stated that the risk perception on On Holding AG (NYSE:ONON) may rise, reasoning that if the company’s long-term outlook reflects team sports development, potentially presented at a CMD next year, it would be slower growth than running and come face to face with strong Nike and Adidas positions.

Cota thus reduced the price target on On Holding AG (NYSE:ONON) to take into account the risks associated with Nike and product diversification.

On Holding AG (NYSE:ONON) is involved in the development and distribution of sports products, including apparel, footwear, and accessories. The company sells its products across the globe through global distributors, independent retailers, an online presence, and its stores.

While we acknowledge the potential of ONON to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ONON and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.