On Friday, Stephens, a financial services firm, increased its price target on shares of Origin Bancorp (NYSE:OBK) to $45.00, up from the previous $42.00, while reaffirming its Overweight rating. The firm's analysts highlighted Origin Bancorp's fourth-quarter 2024 performance, which surpassed expectations with a notable earnings per share (EPS) beat of $2.46. According to InvestingPro data, the company maintains a GOOD overall financial health score, with 2 analysts recently revising their earnings estimates upward.
The positive results were attributed to higher-than-anticipated net interest income (NII) and reduced loan loss provision expenses. Stephens analysts pointed out that Origin Bancorp presented a detailed optimization plan aimed at restoring the company's profitability to match its peers, with a target return on assets (ROA) of approximately 1.0% by the fourth quarter of 2025, up from the current 0.79%. The company has shown strong momentum, delivering an 11.32% return year-to-date.Get deeper insights into Origin Bancorp's financial health and access exclusive analysis with InvestingPro, which offers comprehensive research reports for over 1,400 US stocks.
The analysts expect a gradual increase in profitability throughout 2025, aligning with their full-year 2025 EPS estimate of approximately $3.00. The report also mentioned potential additional opportunities for Origin Bancorp to further improve its ROA, including possible incremental investments in Argent Financial and the implementation of new strategies from its third-party benchmarking project.
The revised price target of $45 reflects a 13.5 times multiple on Stephens' 2026 EPS estimate of $3.34 and 1.3 times their 12-month tangible book value per share (TBVPS) forecast. The firm's analysts remain confident in Origin Bancorp's strategic initiatives and their potential to enhance shareholder value.
In other recent news, Origin Bancorp has been a focal point of various analyst notes and adjustments. Raymond (NSE:RYMD) James has upgraded Origin Bancorp shares from Outperform to Strong Buy, expecting a positive turnaround in the company's performance in the upcoming fourth-quarter earnings. The firm also raised the price target to $44. Analysts from DA Davidson and Stephens have both revised their stock price targets for Origin Bancorp to $38, citing the company's significant presence in the Texas market, deposit growth, effective cost management, and core loan yield growth as positive factors.
Origin Bancorp's revised EPS estimates for 2025 take into account expectations of a higher net interest margin (NIM) and net interest income (NII), as well as reduced noninterest expenses. These factors, however, are partially offset by a projected decrease in fee income. The company's strategic initiatives, including the Optimize Origin program, are expected to enhance performance by the end of 2025.
Keefe, Bruyette & Woods reiterated an Outperform rating, highlighting the bank's potential for improved profitability, with an expectation of a plan to enhance profitability in its fourth-quarter earnings for 2024. Cecil Jones, a seasoned financial professional, has been appointed to Origin Bancorp's Board of Directors, further enhancing its financial reporting and regulatory compliance capabilities. These recent developments reflect Origin Bancorp's ongoing efforts to optimize its financial performance.
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