Jefferies sets Old National stock with $24 price target

On Tuesday, Jefferies, a global investment banking firm, initiated coverage on shares of Old National Bancorp (NASDAQ:ONB) with a Hold rating and established a price target of $24.00. Currently trading at $21.61, the stock has garnered attention from multiple analysts, with InvestingPro data showing nine analysts recently revising their earnings estimates upward. The financial institution, known for its robust history of strong credit quality, has been recognized for its potential to enhance net interest income through strategic repricing of its fixed rate assets and deposits over time.

The new price target reflects Jefferies’ outlook on the company’s financial prospects. With a P/E ratio of 12.48 and an impressive track record of maintaining dividend payments for 43 consecutive years, Old National Bancorp presents an interesting value proposition. Despite trading at a discount compared to its peers—8.5 times its projected 2026 earnings, against an industry average of 9.5 times—Jefferies suggests that the company’s stock valuation could remain subdued in the short term. This anticipated stagnation is attributed to the ongoing integration of the recently acquired Bremer Financial Corporation.

The acquisition of Bremer, a significant regional banking institution, is expected to influence Old National’s financial performance in the coming quarters. As Old National works to assimilate Bremer’s operations, the market is observing how the merger will impact the company’s earnings and operational efficiency.

The Hold rating indicates that Jefferies advises investors to maintain their current position on Old National Bancorp stock without suggesting immediate buying or selling. According to InvestingPro analysis, the company maintains a GOOD financial health score, with particularly strong marks in profit and price momentum metrics. Investors and market watchers will be paying close attention to how Old National Bancorp maneuvers through the post-acquisition phase and whether it can capitalize on the expected improvements in net interest income.

Old National Bancorp’s stock performance following this coverage initiation will likely be closely monitored by investors seeking to gauge the impact of the Bremer acquisition and the company’s ability to leverage its strong credit history in a competitive banking landscape. For a comprehensive analysis of ONB’s valuation, financial health, and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro, which provides expert insights and actionable intelligence for over 1,400 US stocks.

In other recent news, Old National Bancorp reported its financial results for the first quarter of 2025, surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $0.45, exceeding the forecast of $0.43, and recorded revenue of $481.44 million, slightly above the projected $478.31 million. Additionally, Old National Bancorp declared a quarterly cash dividend of $0.14 per share on its common stock, payable in June, and set dividends for its preferred stock series. In terms of corporate governance, shareholders approved all proposals at the company’s 2025 Annual Meeting, including the election of directors and the appointment of Deloitte & Touche LLP as the independent auditor.

Analyst firms have recently adjusted their price targets for Old National Bancorp. Keefe, Bruyette & Woods (KBW) lowered their target to $26 while maintaining an Outperform rating, citing the bank’s strong financial position and profitability potential. Citi also revised its target to $28, keeping a Buy rating, noting the bank’s robust first-quarter earnings and the advancement of a significant deal closure. The anticipated early closing of the Bremer Bank merger on May 1 is seen as a positive catalyst for the bank’s growth and performance.

These developments reflect Old National Bancorp’s ongoing strategic initiatives and positive outlook, as highlighted by analysts and company executives.

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