On Holding Names Sluis Chief Financial Officer

Investing.com -- Goldman Sachs on Monday upgraded On Holding AG (NYSE:ONON) to Buy from Neutral, citing a sharp de-rating in the shares over the past year that has created what it sees as an attractive entry point into a premium sportswear brand with strong growth momentum.

The bank lifted its 12-month price target to $59 from $52, implying roughly 31% upside from the latest close. 

"We believe the de-rating in the shares over the last 12 months offers an attractive entry point into a business that should grow revenue, EBITDA and EPS at a >20% CAGR through to 2028E as it continues to leverage its unique premium position in the sportswear market to drive topline growth and margin expansion," analyst Richard Edwards said.

Edwards highlighted several factors driving the upgrade, including signs of a strong fourth quarter. He points to high-frequency indicators showing robust demand into the holiday season, including web traffic data and sharp gains in China.

Tmall sales for the brand were up 102% year on year in the quarter, which the analyst says has historically been a reliable leading indicator for Asia-Pacific growth and suggests upside risk to current consensus expectations.

Beyond the near-term results, Goldman flags the acceleration in the global running trend as a structural tailwind. Consumer interest in running shoes has reached record levels, and Edwards argues that On’s heritage in running and premium brand positioning leave it well placed to benefit, even as larger peers refocus on the category.

Performance through 2025 has been "reassuring, with growth remaining robust," he noted, despite stronger competitive intensity.

Furthermore, Edwards notes that On “over-indexes to the more resilient high-income consumer cohorts,” giving it relative insulation from weaker sentiment among lower-income consumers, particularly in the U.S. 

The analyst also believes the market is underestimating gross margin upside, especially in the first half of 2026. While recent margin gains were partly helped by one-off factors, he argues that ongoing benefits from pricing, mix and cost tailwinds should more than offset U.S. tariff headwinds.

As a result, he raised the fourth-quarter constant-currency sales growth forecast to 36.2% and lifted EBITDA estimates, leaving its projections above consensus.

Investing.com -- Piper Sandler says a surge in U.S. tax refunds early this year could meaningfully lift consumer spending, with several retailers and restaurants positioned to benefit from the windfall. 

In a new report, analyst Peter Keith said recent changes under the One Big Beautiful Bill Act “could deliver significant tax relief to middle and upper-middle income households this tax refund season — with additional benefits throughout the year via lower withholdings.”

Piper Sandler, citing its PSC Macro Research team, estimates that Disposable Personal Income will see a “+1.5% lift in Q1 and a +1.0% lift in Q2” as higher refunds arrive mainly in March and April. 

Keith added that the Act is expected to deliver “a net new ~$191B in individual income tax relief to taxpayers in 2026,” with roughly $91 billion appearing directly during refund season.

The firm highlighted that refund gains “will over-index to middle- and upper middle-income homeowners in particular, given the increase to the SALT deduction cap.” 

A University of Chicago survey cited by Piper Sandler shows these households expect to save 50 percent to 60 percent of refunds, far higher than lower-income groups.

Against this backdrop, Piper Sandler screened for companies with strong exposure to higher-income consumers and discretionary spending. 

It listed BBY, W and home-improvement names HD, LOW and FND among likely beneficiaries. 

Other names include ONON, BIRK and ULTA in footwear and beauty, and restaurant chains CMG, CAVA and SBUX, alongside pet-food group FRPT.

Piper Sandler stated that these stocks have historically shown sensitivity to refund-driven spending patterns

Investing.com -- As investors look ahead to 2026, BTIG has identified several standout consumer stocks poised for growth despite recent challenges.

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The firm’s analysis points to compelling opportunities across retail, footwear, and food service sectors.

Nike (NYSE:NKE) tops BTIG’s large-cap picks for 2026, with analyst Robert Drbul setting a $100 price target against its current $63.71 price. Despite ongoing challenges, BTIG sees multiple catalysts, including a robust product pipeline, innovation focus, and momentum from the upcoming 2026 World Cup.

The firm expects Nike to return to sustainable sales growth and achieve operating margins above 12% long-term, up from 6.5% in 2025.

In recent developments, Nike received a reiterated Buy rating from Guggenheim, which noted encouraging signs in the company’s North America unit growth, while the company’s CEO also purchased approximately $1 million in stock.

Gap Inc (NYSE:GAP) emerges as BTIG’s top small/mid-cap pick, with a $31 price target versus its current $25.60 price. Analyst Robert Drbul highlights continued strength at Old Navy and momentum at Gap Brand, both benefiting from denim and active wear trends.

The company’s beauty and accessories initiatives are expected to drive sales growth and margin expansion throughout 2026.

Gap Inc. reported better-than-expected third-quarter results, with comparable sales growth of 5%, leading Baird to upgrade the company’s rating to Outperform and several other firms to raise their price targets.

Domino’s Pizza (NYSE:DPZ) joins the large-cap top picks with a $530 price target against its current $416.82 price. Analyst Peter Saleh expects Domino’s to outperform in 2026 as it builds on sales layers to achieve mid-single-digit U.S. retail sales growth.

New menu innovation, third-party delivery growth, and loyalty programs should help the company continue its decade-long trend of gaining approximately 100 basis points of market share annually.

Domino’s Pizza posted third-quarter U.S. same-store sales growth of 5.3%, surpassing consensus expectations, which prompted reiterated Buy ratings from both UBS and Benchmark. The company also announced the resignation of a board member.

Wingstop (NASDAQ:WING) maintains its position as BTIG’s small/mid-cap top pick with a $400 price target versus its current $238.49 price.

Despite lower-income traffic declines, analyst Peter Saleh believes initiatives, including Smart Kitchen technology, loyalty programs, and increased advertising, will generate the anticipated same-store sales recovery in 2026.

Wingstop announced the opening of its 3,000th global restaurant, marking a significant expansion milestone. Following its latest operating results, some analysts lowered their price targets, citing an industry-wide slowdown in customer traffic.

On Holdings (NYSE:ONON) remains a large-cap top pick with a $70 price target against its current $46.48 price. Analyst Janine Stichter views the company as one of retail’s best growth stories, capable of consistently delivering growth exceeding 20%.

BTIG sees a balanced growth profile with opportunities across lifestyle and running segments, distribution channels, and geographies.

More recently, On Holdings has seen continued positive sentiment from analysts, with firms including Piper Sandler and TD Cowen raising their price targets while reiterating Overweight or Buy ratings on the company.

Steve Madden (NASDAQ:SHOO) is selected as BTIG’s small/mid-cap top pick for the first half of 2026 with a $50 price target versus its current $41.64 price.

Analyst Janine Stichter believes the company is at a critical inflection point with moderating tariff headwinds, accelerating organic top-line growth driven by fashion tailwinds, and increasing earnings contributions from the Kurt Geiger acquisition.

Steven Madden reported a third-quarter earnings per share beat, though revenue fell short of forecasts. Following the results and its acquisition of Kurt Geiger, the company received price target increases from firms including Williams Trading and BTIG.

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