Old Second Bancorp stock rating reiterated at Strong Buy by Raymond James

Investing.com - Raymond James has reiterated its Strong Buy rating and $21.00 price target on Old Second Bancorp (NASDAQ:OSBC), following the bank’s participation in the fifth Raymond James Small Cap Bank Summit in New York City. Currently trading at $19.49, OSBC is slightly undervalued according to InvestingPro Fair Value estimates, with analyst high targets reaching as high as $24.50.

Executive Vice President, Chief Financial Officer, and Chief Operating Officer Bradley Adams represented Old Second Bancorp at the investor meetings, conveying an optimistic outlook for the company’s performance and growth prospects. This optimism appears well-founded, as the bank has achieved 9.38% revenue growth over the last twelve months.

The bank remains bullish on its acquisition of Evergreen Bank and the powersports business, while also expressing confidence in overall loan growth and a relatively stable net interest margin (NIM). InvestingPro data shows OSBC maintains a solid financial health score of "GOOD," supporting its acquisition strategy.

Raymond James noted that Old Second Bancorp is potentially interested in acquiring another small bank with a low-cost core deposit base, preferably around $500 million in assets, though it intends to stay within the Chicago MSA. With a market capitalization of $1.03 billion and a manageable debt-to-equity ratio of 0.34, OSBC appears positioned to pursue such acquisitions.

The research firm believes OSBC shares are relatively inexpensive, trading at a forward P/E multiple in line with its peer group median but below the peer group average, which Raymond James suggests does not reflect the bank’s superior fundamental performance. This assessment aligns with InvestingPro data showing OSBC trading at a P/E ratio of 13.19 and price-to-book of 1.18. InvestingPro Tips also highlight that OSBC has maintained dividend payments for 10 consecutive years with 40% dividend growth in the last year. Discover more insights in the comprehensive Pro Research Report, available for over 1,400 US equities.

In other recent news, Old Second Bancorp reported its third-quarter 2025 earnings, which showed a mixed performance. The company’s earnings per share (EPS) came in at $0.18, falling short of the anticipated $0.26, marking a 30.77% miss. Despite this, Old Second Bancorp’s revenue surpassed expectations, totaling $95.88 million compared to the forecasted $92.74 million. These earnings and revenue figures highlight the company’s recent financial situation. There were no reports of mergers or acquisitions involving the company. Additionally, no analyst upgrades or downgrades were mentioned in recent reports. These developments provide a snapshot of Old Second Bancorp’s current financial standing.

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