BUZZ-Columbia Banking rises after Raymond James upgrades to 'strong buy'
Columbia Banking shares rose 2% to $26.58 after Raymond James upgraded the stock to 'strong buy' from 'outperform' and raised the price target to $31 from $27, indicating a 19% upside. The upgrade followed investor meetings post-Pacific Premier Bancorp deal, addressing misperceptions about M&A and capital return timing. Raymond James anticipates a pause in M&A, which could enhance EPS growth, and suggests capital return is likely soon. Currently, two analysts rate the stock as buy or higher, while ten hold, with a median price target of $28.
Shares of regional lender Columbia Banking (COLB.O) up 2% at $26.58
Raymond James upgrades COLB to “strong buy” from “outperform” following investor meetings after the closing of Pacific Premier Bancorp deal
Brokerage also raises price target on COLB to $31 from $27 representing a 19% upside to the stock’s last close
Raymond James says management confronted several misperceptions around the bank, including likelihood of additional M&A near-term and timing of potential capital return
Brokerage expects M&A to be on pause for some time, which can drive EPS growth despite a stable balance sheet
Capital return is likely on the horizon as well, Raymond James says
Two of the 12 analysts rate the stock buy or higher and 10 “hold”; their median PT is $28- LSEG data
Including session’s move, COLB down 2.14% YTD
