Sterne Agee Upgrades Old National To Buy (ONB)

Sterne Agee upgraded its rating on Old National Bancorp ONB to Buy in a research report published today. Its new price target was set to $12.5. In the report, Sterne states, "We are upgrading shares of ONB to Buy with a one-year price target of $12.50 based on our DCF model, which assumes the shares trade at ~14.0x our 2012E and ~1.6x TBVS a year from now. 1Q11 results should cause doubters on ONB's ability/commitment to rationalizing the cost structure to reassess their position. It should also remove negativity around the Monroe acquisition, which appeared quite beneficial to 1Q11 earnings." In today's trading, Old National rose 2.27% to $10.81.