Strong Buy reaffirmed as Old National Bancorp stock gains from Bremer deal potential

On Wednesday, Raymond (NSE:RYMD) James analyst increased the price target on Old National Bancorp (NASDAQ:ONB) to $29 from $28, while reiterating a Strong Buy rating for the company's stock. The revision follows Old National Bancorp's fourth-quarter results, which led to a notable performance in the stock market on Tuesday, with shares climbing 3.0% compared to the BANK Index's rise of 1.4%. Trading at $23.66, near its 52-week high of $24.16, InvestingPro analysis suggests the stock is fairly valued, with a P/E ratio of 13.65 and market capitalization of $7.55 billion.

The positive market reaction is attributed to the bank's optimistic outlook for 2025, prompting Raymond James to enhance its earnings per share (EPS) estimates for 2025 and 2026 by 5%. The bank's early engagement in the current mergers and acquisitions cycle has been highlighted as a strategic move. By securing favorable terms in the recent Bremer transaction, Old National Bancorp has positioned itself to attract additional investor interest. According to InvestingPro, the bank has maintained dividend payments for 42 consecutive years, demonstrating consistent shareholder returns.

The analyst's commentary underscores confidence in Old National Bancorp's strategic initiatives and their expected impact on the bank's financial performance. The increase in price target reflects the bank's successful fourth quarter and its potential for sustained growth and profitability in the coming years. InvestingPro data reveals a strong financial health score, with particularly robust price momentum metrics. Subscribers can access 6 additional ProTips and comprehensive valuation analysis in the Pro Research Report.

The Strong Buy rating maintained by Raymond James suggests that the firm believes Old National Bancorp's stock will outperform the broader market in the near future. The bank's proactive approach to mergers and acquisitions, as well as its favorable long-term outlook, are key factors underpinning this positive assessment.

Investors responded positively to the bank's fourth-quarter results and future prospects, as evidenced by the stock's outperformance on Tuesday. With the raised price target and continued Strong Buy rating, Old National Bancorp remains a focal point for those following financial sector investments.

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