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On Thursday, Redburn Atlantic analysts revised their stance on On Holding (NYSE:ONON), changing the rating from “buy” to “neutral” and increasing the price target from the previous target to $34.00. It was adjusted. This change was made after observing the company's stock price increase significantly from $25 in late October 2023 to $33 recently.
The analyst noted that On Holding's long-term business potential remains promising, but the current valuation reflects this optimism. The rapid rise in stock prices to near the set target suggests that the upside potential is limited. As a result, Redburn Atlantic has softened its view on the stock.
On October 24, 2023, Redburn Atlantic released a detailed report entitled 'The Future and Upside' in which they expressed a bullish outlook for On Holding. Since then, the stock has moved closer to its target, showing that the market is quick to respond to positive analysis.
The analyst also emphasized that while there are opportunities for the sportswear industry, 2024 will also present challenges. Developments in the sector have been a factor in the rerating of On Holding stocks, suggesting that current market conditions are being factored into the downgrade.
In summary, Redburn Atlantic's adjustment of On Hold's rating to Neutral with a $34.00 price target reflects the rapid appreciation in stock price and the potential future risks and rewards for the sportswear industry. reflects a balanced outlook.
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