ONB Stock Forecast & Price Target

Old National Bancorp has demonstrated robust financial growth, highlighted by a 32.8% sequential increase in net interest income to $514.8 million, largely benefiting from its recent merger. The company's reported net interest margin expanded by 26 basis points to 3.53%, marking a 20 basis points improvement year-over-year, which signals effective management of interest-related products amidst a competitive banking environment. Additionally, the total loan pipeline has shown significant growth, rising to $4.8 billion from $3.4 billion in the previous quarter, indicating strong future lending activity driven by increased commercial loan balances.

Old National Bancorp faces considerable risks, particularly regarding asset quality performance, which could adversely affect its earnings, capital, and growth outlook. Additionally, a decline in its Common Equity Tier 1 (CET1) ratio to 10.74% and challenges in managing net interest margins could hinder the company's ability to achieve competitive returns on equity and realize merger benefits. Finally, the broader economic environment in its core Midwestern markets poses significant risks to Old National's financial stability and overall stock performance.