ONB Stock Forecast & Price Target

Old National Bancorp has demonstrated positive financial momentum, highlighted by a sequential increase in net interest income of 1.1% to $581 million and a margin rise to 3.65%. The total loan portfolio also expanded by 1.7%, with notable contributions from commercial and residential mortgage loans, signaling strong demand and effective lending strategies. Additionally, the recent acquisition of Bremer Financial Corporation is expected to enhance Old National's market presence in the Upper Midwest, further supporting anticipated loan growth in the upcoming quarters.

Old National Bancorp faces significant risks that contribute to a negative outlook on its stock, which include potential deterioration in asset quality and lower-than-expected performance in key financial metrics. A decrease in core fee income by 3.7% sequentially and challenges in managing net interest margins could further hinder its earnings and return on equity. Additionally, the uncertain macroeconomic environment, particularly in its Midwest operational footprint, raises concerns about the company’s growth outlook and overall financial stability.