On Holding AG (ONON) was named a top pick at UBS on Tuesday, representing its third top-pick designation in the last week.
Analysts at UBS maintained a Buy rating and $51 price target on the stock, saying the bank's meetings with On management increased their conviction in the sports apparel firm.
They believe On's continued focus on innovation, athletes, maintaining a premium brand image, and direct-to-consumer selling will lead to the company delivering a 43% 5-year EPS CAGR.
"Our view is this will surprise the market and drive stock outperformance," wrote the analysts. "We view ONON as Softlines' best growth stock and worthy of a premium multiple. The market sees On as mainly a running shoe brand and doesn't fully appreciate the brand's potential to address a much larger market, in our view."
UBS's latest note comes not long after Needham & Company named the stock a top pick for 2024, adding it to the Conviction List. Furthermore, Piper Sandler also named On as a top pick last week.