01:10 PM EST, 11/04/2024 (MT Newswires) -- On Holding ( ONON ) is expected to beat Q3 estimates for sales and a measure of earnings and to raise fiscal 2024 revenue growth guidance, UBS Securities said Sunday in a report.

Industry data indicated the company posted high double-digit growth in US direct-to-consumer sales across all the months in Q3 and took market share from rival Nike ( NKE ) , UBS said. Results from On Holding ( ONON ) are scheduled for Nov. 12.

"We believe the market sees On as mainly a running shoe brand and doesn't fully appreciate the brand's potential to address a larger market," the report said. On's growth "should lead to EPS beats, which could keep the stock's valuation high and drive stock outperformance," UBS said.

The main negative risk is a sales guidance surprise linked to foreign exchange from Zurich-based On, the report said.

UBS increased its price target on the stock to $61 from $55 and reiterated its buy rating.

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