On (ONON) is expected to continue gaining "meaningful" market share over time after the sportwear company raised its 2025 net sales outlook and reported "solid" Q2 sales that beat analyst expectations, UBS said in a note Tuesday.

On reported Tuesday a Q2 adjusted loss of 0.09 Swiss francs ($0.11) per diluted class A share, swinging from earnings of 0.14 francs a year earlier. The company also reported that Q2 net sales increased to 749.2 million francs from 567.7 million francs a year earlier.

For 2025, the company raised its net sales forecast to at least 2.91 billion francs from an earlier outlook of 2.86 billion francs.

On also raised its full-year gross profit and adjusted EBITDA margin, which highlights its ability to offset the impact of tariffs via pricing and by "generating operational efficiency gains," the analysts said.

UBS said it raised its full-year sales growth, gross profit and adjusted EBITDA margin forecasts following Q2 results and due to expectations that "strong underlying trends" will continue in H2.

The analysts also lowered their full-year EPS forecast citing unfavorable foreign exchange impacts in Q2 and for the rest of the year.

UBS said it believes the company can achieve a 2% market share over the long term and that the market doesn't "fully appreciate" On's potential to "address a larger market."

The investment firm maintained a buy rating on the stock and raised its price target to $79 from $75.

Shares of the company were down 4.1% in recent trading.

Price: 47.72, Change: -2.09, Percent Change: -4.20