On Friday, Piper Sandler, a renowned financial services firm, presented its top stock picks for the year 2025. The list, curated by the firm's research analysts, features a selection of companies they believe have high potential for strong performance. These picks are intended to guide investors seeking robust opportunities in the new year.
The companies chosen cover a diverse array of industries, signaling Piper Sandler's confidence in these stocks. Among the top picks are Abacus Life, Inc. (NYSE:ABL), Amerant Bancorp Inc. (NASDAQ:NYSE:AMTB), and Axos Financial, Inc. (NYSE:NYSE:AX). These firms represent sectors that include life settlements, banking, and digital financial services, respectively.
Additional companies that made it to Piper Sandler's list include Essex Property Trust, Inc. (NYSE:NYSE:ESS), a real estate investment trust, and First Bank (NASDAQ:FRBA), a community bank. First Interstate (NASDAQ:FIBK) BancSystem, Inc. (NASDAQ:FIBK) and First Merchants (NASDAQ:FRME) Corporation (NASDAQ:FRME), both financial institutions, are also highlighted as top investment ideas.
The list continues with Flagstar Financial, Inc. (NYSE:FLG), Galaxy Digital (TSX:GLXY) Holdings Ltd. (TSX:GLXY-CA), a company focused on digital assets, and LendingClub Corp . (NYSE:NYSE:LC), an online lending platform. Old National Bancorp (NASDAQ:ONB), a bank holding company with a market capitalization of $7.16 billion, and Palomar Holdings, Inc. (NASDAQ:PLMR), an insurance provider, are also among the analysts' selections. According to InvestingPro data, ONB stands out with its 42-year track record of consistent dividend payments and impressive recent performance, showing a 26% price return over the past six months. The stock currently trades at an attractive P/E ratio of 12.8x and offers a dividend yield of 2.65%.
Rounding out Piper Sandler's top picks are Pathward Financial, Inc. (NASDAQ:CASH (TSX:CASH)), which offers banking products and services, and Principal Financial Group (NASDAQ:PFG), a global financial investment management leader. These companies are poised, according to Piper Sandler's analysts, to be solid investment choices throughout the year and beyond. For investors seeking deeper insights, InvestingPro offers comprehensive research reports on over 1,400 US stocks, including detailed financial health scores and expert analysis to help make informed investment decisions.
In other recent news, Old National Bancorp's acquisition of Bremer Financial Corporation is making waves in the financial sector. The deal, valued at approximately $1.4 billion, has led to significant adjustments in the company's stock price targets. Citi analyst Benjamin Gerlinger raised Old National Bancorp's price target to $27, while Piper Sandler and Keefe, Bruyette & Woods also increased their price targets and maintained their positive ratings.
Old National Bancorp has also expanded its stock offering, entering into an additional forward sale agreement with Citibank for an extra 2,857,143 shares of common stock. This follows an initial forward sale agreement for 19,047,619 shares.
The Bremer acquisition, expected to be completed in the second quarter of 2025, is anticipated to significantly enhance Old National Bancorp's profitability in 2025 and 2026. It's also predicted to improve the bank's net interest margin, according to Gerlinger.
Old National Bancorp has demonstrated strong financial fundamentals, maintaining a 42-year streak of dividend payments and trading at a P/E ratio of 13.75. The company's third-quarter financial results for 2024 reported a GAAP EPS of $0.44 and an adjusted EPS of $0.46, supported by a 10.1% annualized growth in core deposits and a 4.1% increase in commercial loans. These are recent developments in Old National Bancorp's strategic financial operations.
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