Roger Federer-Backed On, Blink Charging, Applied Therapeutics Catch Wall Street's Eye Today: What’s Retail Feeling?

Analysts from well-known brokerage firms on Wednesday initiated coverage on several stocks. Each of the top three, as listed by thefly.com, offers a unique investment proposition — from the stylish world of athletic footwear to the burgeoning EV charging infrastructure and the promising field of rare disease treatments. How are retail investors reacting to the notes?

On Holding AG (ONON): A Running Start

Swiss footwear giant, On Holding AG, is experiencing a surge in popularity. Backed by tennis icon Roger Federer and with a growing athlete roster for the Paris 2024 Olympics, the company is making significant strides. 

Raymond James expressed bullish views on the company, with an Outperform rating and $46 price target,. It’s predicting strong demand and operating margin expansion to drive annual growth of over 25% for revenue, over 30% for EBITDA, and over 50% for earnings through 2026.

Retail investors on Stocktwits, bearish a day ago, have turned extremely bullish (76/100), mirroring the analyst's sentiment.

Partnerships with celebrities like Zendaya and FKA Twigs are also fueling On’s strategic shift towards a younger, fashion-oriented clientele. While the broader sportswear industry initially shook on Nike's earnings miss last month, recent upbeat results from Skechers and Deckers have rekindled some investor confidence. With a 54% year-to-date surge, On is outpacing both Nike and Skechers.

Blink Charging (BLNK): Charging Ahead

EV charging company Blink Charging has garnered attention after Benchmark initiated coverage with a "Buy" rating and $5 price target. The company's focus on Level 2 chargers, a segment expected to dominate the market, is a key factor driving analyst optimism. 

Recent wins, such as being selected as an official supplier for NASPO ValuePoint — which opens doors to a substantial customer base of government agencies and educational institutions — and partnering with Chinese EV giant BYD’s dealership in Mexico, have further bolstered investor confidence.

Despite industry-wide challenges, Blink's strategic positioning and growing market share have contributed to a positive stock performance. While retail investors are enthusiastic, the company will need to navigate the evolving EV landscape to sustain its momentum.

Applied Therapeutics Inc. (APLT): A Rare Opportunity?

Applied Therapeutics, a pharmaceutical company specializing in rare disease treatments, has emerged as an “under-the-radar” investment opportunity, according to William Blair, which gave an "Outperform" rating based on the promising drug pipeline and potential for significant value creation.

While retail investor sentiment is currently bearish (26/100), APLT’s inclusion in the Russell 3000 index is viewed as a potentially positive catalyst in the long run. 

Applied Therapeutics missed Q1 earnings and revenue estimates, but analysts feel its focus on a rare genetic disorder coupled with a strong financial position, sets it up for growth. Its new drug application for govorestat (AT-007), a treatment for galactosemia, is currently under review by the FDA. The stock is up over 61% year-to-date.