Piper Sandler raised the firm’s price target on Old National Bancorp (ONB) to $27 from $23 and keeps an Overweight rating on the shares after the company announced it is acquiring Bremer Financial. The $1.4B total deal value is about 20.3% of Old National Bancorp’s market cap, making it a substantial transaction for the company, Piper adds. The main strategic benefit is that the acquisition boosts Old National Bancorp’s TwinCities presence, taking it from #10 to #3 in the Minneapolis/St. Paul MSA and vaulting MSP to the company’s second-largest market. But the big surprise was the attractive pricing, the firm says.
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