JPMorgan initiates Old National Bancorp stock at Overweight

JPMorgan has rated Old National Bancorp (NASDAQ:ONB) as Overweight, predicting a stock price of $32.00. The bank's current valuation, with a P/E ratio of 11.3 and a low PEG ratio of 0.33, supports JPMorgan's bullish outlook. Old National Bancorp, a $74 billion regional bank founded in 1834 in Indiana, has expanded to serve clients across multiple states in the Midwest and Tennessee.

The company boasts a diverse product range including retail and commercial banking, wealth management, investment, and capital markets. Over the past five years, Old National has quadrupled its asset base to $74 billion, with a significant portion of this growth driven by acquisitions. In 2022, the company acquired First Midwest, adding $22 billion in assets and entering Chicago's market.

In 2024, Old National's acquisition of Capstar expanded its footprint into Tennessee with $3 billion in assets. The 2025 acquisition of Bremer added $16 billion in assets, extending its reach to Minnesota, Wisconsin, and North Dakota. These strategic expansions have resulted in revenue growth of 40.5% over the past year. Despite its strong growth trajectory, Old National Bancorp's stock has experienced a slight decrease in recent trading.

The company reported better-than-expected earnings and revenue for the second quarter of 2026, with adjusted earnings per share of $0.65, surpassing the analyst consensus estimate of $0.63, and revenue of $740.06 million, exceeding the forecasted $716.25 million.