On Tuesday, Piper Sandler reaffirmed its Overweight rating on shares of Old National Bancorp (NASDAQ:ONB), with a steady price target of $23.00. The firm's stance comes despite Old National Bancorp's practice of not providing mid-quarter updates, relying instead on its quarterly investor presentations to set expectations.
The financial institution filed its investor deck in the middle of last month, which did not contain any guidance revisions. Based on this, Piper Sandler does not anticipate any significant changes to the company’s narrative or performance forecasts for the current quarter.
The analyst from Piper Sandler emphasized the consistency of Old National Bancorp's approach, stating, "ONB typically does not offer a mid-Q update, leaning rather on its quarterly investor deck to speak for expectations." This suggests a level of confidence in the bank's ability to meet its previously set expectations without the need for in-quarter commentary adjustments.
Old National Bancorp's strategy of using its quarterly investor deck as the primary communication tool for its performance outlook appears to align with the firm's investment thesis. Piper Sandler's reiterated Overweight rating indicates a positive outlook on the stock’s performance potential.
Investors in Old National Bancorp can look to the company's past filings and statements for insight into its performance, as no new guidance or changes have been signaled since the last investor deck was published. The price target set by Piper Sandler remains unchanged at $23.00, reflecting stability in the firm's valuation of the bank's stock.
In other recent news, Old National Bancorp has seen significant financial growth, surpassing second quarter expectations for 2024. The company reported GAAP earnings of $0.37 per common share and an adjusted EPS of $0.46. This positive performance is largely attributed to the successful integration with CapStar Bank, which extended Old National Bancorp's reach into southeastern markets.
Old National Bancorp also declared a quarterly cash dividend of $0.14 per common share, and dividends for its preferred stock. Analyst firms Citi and RBC Capital have both revised their outlook on Old National Bancorp, raising their respective price targets, citing the bank's strong fundamentals and growth trajectory.
In addition to these financial results, Old National Bancorp plans to continue its focus on expanding its wealth management, treasury management, and capital markets businesses.
InvestingPro Insights
Piper Sandler's continued confidence in Old National Bancorp (NASDAQ:ONB) is echoed by certain metrics and InvestingPro Tips that highlight the company's financial robustness. With a market capitalization of approximately $6.33 billion and a P/E ratio of 11.56, Old National Bancorp stands as a significant player in the banking sector. Furthermore, the company's commitment to shareholder returns is demonstrated by its impressive history of maintaining dividend payments for 42 consecutive years, coupled with a current dividend yield of 2.82%.
Investors may also find reassurance in the bank's performance over the last three months, which has seen a strong return of 19.45%. This bullish trend is further supported by the company trading near its 52-week high, at 96.48% of the peak price. While analysts have revised their earnings expectations downwards for the upcoming period, they predict Old National Bancorp will remain profitable this year, a sentiment backed by the bank's profitability over the last twelve months.
For those seeking a deeper dive into the financial health and future prospects of Old National Bancorp, additional InvestingPro Tips are available, with a total of 7 insights provided at https://www.investing.com/pro/ONB. These tips offer valuable perspectives for the discerning investor looking to make an informed decision on the stock.
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