Citi Lifts Old National Bancorp Target to $29 on Yield Curve, Buyback Doubles to $400M
Citi raised its price target on Old National Bancorp to $29 from $28, maintaining a Buy rating, citing a more normalized yield curve that should bolster regional bank profitability. The board approved a 3.6% dividend hike to $0.145 per share and doubled its buyback capacity to $400 million through February 2027.
1. Citi Raises Price Target
Citi increased its price target on Old National Bancorp from $28 to $29 and reaffirmed a Buy rating, noting that a more normalized yield curve will provide a supportive margin environment for regional banks like ONB.
2. Dividend Increase Approved
The board authorized a 3.6% increase in the quarterly dividend to $0.145 per share, with shareholders of record as of March 5, 2026, to receive the payment on March 16, 2026, reflecting a commitment to shareholder returns.
3. Share Buyback Program Expanded
Directors doubled the share repurchase authorization to $400 million through February 28, 2027, up from $200 million, permitting buybacks via open market purchases, private negotiations or accelerated agreements based on market conditions and management discretion.