Raymond James upgraded Columbia Banking System (NASDAQ:COLB) to Strong Buy from Outperform and raised its price target to $31 from $27 following investor meetings.
The firm said management addressed several misconceptions about the bank, including the likelihood of near-term M&A, earnings growth without balance sheet expansion, and the timing of capital return. Analysts said M&A was unlikely in the near term, but earnings growth could still be achieved, and capital return was expected soon.
Raymond James noted that Columbia had returned to its legacy culture and balance sheet following its rebranding, elimination of the executive chairman role, and ongoing balance sheet adjustments. With pro forma profitability projected at 18.6% ROATCE and 1.37% ROAA in 2026, a well-covered 5.4% dividend yield, and the likelihood of a buyback later this year, analysts said the risk-reward profile appeared highly favorable.
