On Holding ‘s pricing power and a potential backlash from Chinese consumers against American brands could help the stock stand out from peers, according to Citigroup. The firm upgraded the sneaker stock to buy from hold on Monday, but lowered its price target to $60 per share from $65. Citi’s forecast calls for about 33% upside from Friday’s $45.03 close. Shares have slipped 15% so far in 2025. While analyst Paul Lejuez lowered his full-year earnings forecast for On Holding due to currency headwinds and the impact of President Donald Trump’s wide-ranging tariffs, he said the company’s strong momentum should help it emerge as an outlier in apparel and footwear. Also, as a Switzerland-based company, it could be viewed more positively outside the U.S. than its peers as Trump’s global trade war continues. ONON YTD mountain On Holding stock in 2025. “As the fastest growing brand within athletic/softlines with very strong brand heat (and a Swiss brand, not American), a geographically diverse sales base, and low sourcing exposure in China, we believe ONON is one of the best positioned brands to navigate the current uncertain tariff environment,” Lejuez said. Consumer pushback in countries like China could hurt sales of brands such as Nike and Lululemon , Lejuez said, which could ultimately help On. The strength of On’s brand and reputation also means it could have the pricing power to more easily pass on the cost of tariffs to consumers than its peers, he said. “We are concerned about a global consumer slowdown and a backlash toward American brands (particularly amongst Chinese consumers), which can have a significant impact on this group, particularly those perceived as American brands with higher China sales exposure (NKE, LULU),” the analyst said. “With disruptions from the tariff situation potentially resulting in a backlash towards American brands abroad, as a Swiss brand, we believe ONON is in an even better position to take market share in key markets in APAC and EMEA from more established American players like NKE.”
