ONON Should I Buy
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On Holding Ltd (ONON) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. Despite short-term headwinds such as conservative guidance and FX challenges, the company demonstrates strong revenue growth, record-high gross margins, and a well-balanced growth profile. Analysts maintain a positive outlook with Buy ratings and price targets significantly above the current price, indicating potential upside. The current dip in share price presents an attractive entry point for long-term investors.
The technical indicators show bearish momentum with the MACD below 0 and negatively expanding, RSI at 28.178 (neutral zone), and bearish moving averages (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 41.625), suggesting limited downside risk in the short term.
Record-high gross margins and strong Q4 earnings exceeding expectations.
Significant growth potential in the Asia-Pacific region.
Analysts maintain Buy ratings with price targets significantly higher than the current price.
Long-term growth potential supported by rising brand awareness and premium positioning in the sportswear market.
Conservative 2026 revenue guidance disappointing investors.
FX headwinds and concerns about slower apparel growth.
Bearish technical indicators in the short term.
In Q4 2025, revenue increased by 24.94% YoY to $794.4M, net income surged by 289.84% YoY to $118.9M, EPS rose by 300% YoY to $0.36, and gross margin improved to 65.75%, up 8.5% YoY. These metrics highlight strong financial performance and operational efficiency.
Analysts maintain a positive outlook with Buy ratings despite lowering price targets due to conservative guidance. The average price target remains significantly above the current price, reflecting confidence in the company's long-term growth potential.
