On (ONON) Q2 report is likely to weigh on sentiment despite a small earnings beat, as the company lowered its full-year sales growth outlook, UBS said in a note emailed Wednesday.
On reported Tuesday Q2 adjusted EPS of 0.35 Swiss francs, above the Street's 0.34 francs estimate, while revenue rose 13.5% to 850.3 million francs.
UBS said the main concern is On's lower full-year constant-currency sales growth outlook, where the market likely expected a small raise, but added that the issues weighing on it are likely temporary and the company remains well positioned once macro conditions improve.
UBS maintained its buy rating and $83 price target.
Price: $30.95, Change: $+0.04, Percent Change: +0.13%