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On Wednesday, Keefe, Bruyette & Woods (KBW) adjusted their outlook on Old National Bancorp (NASDAQ:ONB), reducing the price target from $28.00 to $26.00. Despite this change, the firm maintains an Outperform rating on the bank’s shares. The price target adjustment comes as Old National Bancorp continues to be favored by KBW due to its robust financial position and potential for profitability.
In summary, while the price target for Old National Bancorp has been lowered, the bank’s overall outlook remains positive in the eyes of KBW analysts. The bank’s solid financial foundation, expected profitability, and the forthcoming Bremer transaction are all factors that contribute to the Outperform rating and the view that the stock is an attractive investment at its current price. Notable strengths include a 43-year track record of consistent dividend payments, with a current yield of 2.81%. For deeper insights into Old National Bancorp’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports. Notable strengths include a 43-year track record of consistent dividend payments, with a current yield of 2.81%. For deeper insights into Old National Bancorp’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
Old National Bancorp’s stock performance has been noted as strong, outperforming the KBW Regional Banking Index (KRX) year-to-date, with Old National Bancorp shares down 9% compared to the KRX’s 13% decline. KBW’s analysts suggest that the current share price levels present a compelling opportunity for investors, especially in light of increasing economic uncertainties.
The firm’s analysis underscores Old National Bancorp’s appealing valuation, which is currently at 7.5 times KBW’s estimated earnings for 2026. This valuation is considered very inexpensive, which, combined with the bank’s positive attributes, supports KBW’s recommendation to own the stock.
In summary, while the price target for Old National Bancorp has been lowered, the bank’s overall outlook remains positive in the eyes of KBW analysts. The bank’s solid financial foundation, expected profitability, and the forthcoming Bremer transaction are all factors that contribute to the Outperform rating and the view that the stock is an attractive investment at its current price.
In other recent news, Old National Bancorp reported its first-quarter 2025 financial results, surpassing expectations with an adjusted earnings per share (EPS) of $0.45, exceeding the forecasted $0.43. The company’s revenue also outperformed projections, reaching $481.44 million against an anticipated $478.31 million. The bank’s strong capital position, highlighted by a CET1 ratio of 11.62%, supports its ongoing expansion efforts, including a pending merger with Bremer Bank expected to close on May 1. Citi analysts have maintained a Buy rating for Old National Bancorp, despite adjusting the price target to $28 due to a constrained economic outlook. This adjustment comes even as the bank demonstrates robust first-quarter earnings and advances the timeline for its merger completion. The bank’s unique operational position, bolstered by the pending transaction and a larger loan portfolio, is expected to support further earnings per share revisions in the latter half of 2025. Analysts from Citi also noted the potential for Old National Bancorp to achieve a peer-like multiple, given its strategic initiatives and financial health. These developments reflect the bank’s ability to navigate a challenging economic environment while positioning itself for future growth.
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