Raymond James’ Reaffirmed Confidence In Old Second’s Expansion Strategy Might Change The Case For Investing In OSBC

• Earlier this week, Raymond James reaffirmed its Strong Buy rating on Old Second Bancorp after the bank presented at the Raymond James Small Cap Bank Summit, highlighting confidence in the Evergreen Bank deal, its powersports lending niche, and steady loan growth prospects.
• The firm also underlined Old Second’s interest in acquiring another small bank in the Chicago metropolitan area, signaling continued expansion ambitions that could reshape its regional footprint and business mix over time.
• We’ll now examine how Raymond James’ reaffirmed optimism around Old Second’s acquisition strategy and Chicago expansion plans may influence its investment narrative.

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Old Second Bancorp Investment Narrative Recap

To own Old Second Bancorp, you need to believe in a focused Illinois franchise that can turn acquisitions, like Evergreen Bank, and niche powersports lending into sustained earnings while managing credit and integration risks. Raymond James’ renewed confidence moderately reinforces the near term acquisition and Chicago expansion story, but it does not materially change the key risk around credit quality and execution as the balance sheet grows.

Among recent updates, Raymond James’ commentary lines up most directly with Old Second’s ongoing Evergreen Bank integration, which analysts view as a core earnings and margin catalyst once fully bedded down. The firm’s remarks about potential additional Chicago bank deals tie this earlier acquisition to a broader build out of scale and mix, while also reminding investors that each new transaction adds complexity and regulatory and integration risk.

Yet even with expansion plans in Chicago, investors should be aware of concentrated exposure to local economic conditions and commercial real estate...

Read the full narrative on Old Second Bancorp (it's free!)

Old Second Bancorp's narrative projects $357.7 million revenue and $141.3 million earnings by 2028.

Uncover how Old Second Bancorp's forecasts yield a $21.75 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have produced 3 very different fair value estimates for Old Second Bancorp, from US$19.55 up to US$13,471.30, underscoring how far opinions can spread. Set this against Old Second’s Chicago centric footprint and acquisition focused growth story, and you can see why it is worth comparing several views before deciding how those risks and opportunities could influence returns.

Explore 3 other fair value estimates on Old Second Bancorp - why the stock might be worth just $19.55!

Build Your Own Old Second Bancorp Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Old Second Bancorp research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Old Second Bancorp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Old Second Bancorp's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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