Truist has initiated its coverage on Old National Bancorp (ONB, Financial) with a Buy rating, setting a price target of $26. The firm highlighted ONB’s robust presence in the Midwest as a key factor. Moreover, the bank is recognized for its exceptional efficiency ratio profile and a solid history of achieving or surpassing goals related to previous significant acquisitions. These attributes make ONB a promising prospect for investors looking for stability in uncertain market conditions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Old National Bancorp (ONB, Financial) is $25.11 with a high estimate of $28.00 and a low estimate of $23.00. The average target implies an upside of 13.47% from the current price of $22.13. More detailed estimate data can be found on the Old National Bancorp (ONB) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Old National Bancorp's (ONB, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Old National Bancorp (ONB, Financial) in one year is $24.93, suggesting a upside of 12.65% from the current price of $22.13. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Old National Bancorp (ONB) Summary page.
ONB Key Business Developments
Release Date: April 22, 2025
- GAAP Earnings Per Share: $0.44 for Q1 2025.
- Adjusted Earnings Per Share: $0.45, excluding $0.01 per share of merger-related charges.
- Net Interest Income: In line with expectations, with net interest margin down modestly.
- Tangible Book Value Per Share: Increased by 5% from last quarter and 13% year over year.
- CET1 Ratio: 11.62%, up 86 basis points from a year ago.
- Total Loan Growth: 1.5% annualized from last quarter, or 2.3% excluding $70 million of CRE loan sales.
- Total Deposit Growth: 2.1% annualized, with core deposits up nearly 1.7% annualized.
- Noninterest Income: $94 million for the quarter, above guidance.
- Adjusted Noninterest Expenses: $263 million, moderately better than guidance.
- Net Charge-Offs: 24 basis points, or 21 basis points excluding PCD loans.
- Allowance for Credit Losses: 116 basis points, up 2 basis points from the prior quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Old National Bancorp (ONB, Financial) reported better-than-expected first-quarter earnings, demonstrating strong performance in a challenging economic environment.
- The company experienced solid loan growth and a strong deposit franchise, which drove positive results.
- Net interest income and margin performance met expectations, with noninterest income benefiting from gains on loan sales and higher fees from mortgages and service charges.
- The tangible book value increased significantly compared to both the previous quarter and year over year.
- The partnership with Bremer Bank is expected to enhance ONB's footprint, providing greater scale and density in the Upper Midwest, and is anticipated to close earlier than expected, on May 1.
Negative Points
- The macroeconomic environment remains uncertain, which could impact future growth and rate outcomes.
- There is a potential for increased competition in the commercial real estate market, which may affect loan growth.
- The company's guidance assumes three rate cuts, which may not align with actual future Federal Reserve actions.
- Noninterest income has been volatile, with recent quarters showing fluctuations due to discrete items and loan sales.
- The economic uncertainty has led to a cautious approach from clients, potentially impacting future business activities and growth.
