John Kernan has given his Buy rating due to a combination of factors concerning On Holding AG's robust financial outlook and market performance. The decision is underpinned by the brand's consistent innovation and strong pricing strategies, which have led to high expectations for future earnings growth. Kernan's increased confidence in On Holding AG is reflected in the upward revision of the price target to $58, suggesting a substantial potential for appreciation. This confidence is bolstered by the company's efficient automation and warehousing improvements, likely contributing to the forecasted earnings per share compounded annual growth rate of over 53% into fiscal year 2027. Furthermore, the brand's premium distribution strategy and successful customer acquisition trends reinforce the Buy rating. On Holding AG's gross margins are expected to remain above 60%, a significant achievement in a market where many competitors face deflationary pressures.