UBS Keeps Buy Rating on On Holding
UBS maintains its buy rating on the Swiss footwear maker ahead of its third-quarter results, expecting limited upside from the report.
Updated on Nov. 4, 2026 in Economic Indicators
UBS has kept a buy rating on On Holding ahead of its third-quarter results, saying the report is likely to offer limited upside. On Holding projected third-quarter sales growth of 17%, excluding foreign exchange effects, at its September 22, 2025 analyst day.
Why it matters
The rating reflects UBS's view that On Holding's growth momentum is intact while its share price may already reflect expectations. Investors weighing the stock ahead of earnings face a market pricing a large move in either direction.
Options markets implied an 8.9% share move in either direction on the report, compared with a historical average earnings-day move of 10.4%. UBS expects a smaller reaction than the options-implied move.
The players
UBS
UBS is a Swiss multinational investment bank and financial services firm headquartered in Zurich and Basel.
On Holding
On Holding is a Swiss athletic footwear and apparel company known for its cushioned running shoes.
The details
UBS analysts say On Holding's third-quarter sales growth, excluding foreign exchange effects, should be in line with the company's projection, with an EBITDA margin also in line with expectations. They also expect the company to keep its fiscal 2026 growth outlook in the low-20% range, which would imply similar fourth-quarter growth.
Timeline
September 22, 2025: On Holding projected third-quarter sales growth of 17% at its analyst day.
November 4, 2026: UBS maintained its buy rating ahead of the third-quarter results.
Market Dynamics
UBS Evidence Lab's European transaction monitor shows EU spending growth slowing to 8% from 44%, a shift that tests the consumer demand behind premium footwear brands like On Holding. Analysts are weighing that slowdown against the company's continued website traffic gains, which rose 56% year over year in the third quarter.
For investors holding or considering On Holding shares, the report is a near-term test of whether the company can sustain growth in the low-20% range. The options-implied 8.9% move means the stock could shift sharply in either direction on the day of results.
The takeaway
Strong web traffic and a buy rating do not guarantee a large share move on earnings day. Investors should watch whether third-quarter sales match the 17% projection and whether the fiscal 2026 outlook holds.
Further reading
For broader context on the consumer data behind this call, see Economic Indicators.
Source note: This article includes information reported by Proactiveinvestors NA.
