🚀 $On Holding AG(ONON)$ jumped more than 10% today, and there are three big reasons behind the move.
1️⃣ High teens revenue growth through 2029
Management is now guiding for high teens revenue growth through 2029.
That gives investors a much clearer view of the company's longer-term growth trajectory, rather than forcing the market to focus only on the next quarter. 📈
2️⃣ 65% gross margins through 2029
This may be the more important number.
Management sees gross margins holding around 65% through 2029, which would leave plenty of room for operating leverage as revenue scales.
For a consumer brand still expanding globally, that kind of margin profile is a major part of the long-term thesis. 💰
3️⃣ A $1 billion buyback
Then there is the headline-grabbing move:
💵 $1 billion share repurchase authorization.
And this is where the message from management gets particularly interesting.
I've liked $ONON for a long time, but the market hasn't always agreed. The stock has had to prove that its growth story can translate into durable financial performance.
Now management is effectively putting capital behind the valuation.
If investors aren't willing to buy the stock at these levels, the company itself is willing to step in and buy it back.
🔥 That's not just another headline.
It's a meaningful signal about how management views the stock and the company's future cash generation.
Markets are always moving - and sometimes, the best move is knowing what works for you.
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