Columbia Banking upgraded to Strong Buy from Outperform at Raymond James

Raymond James analyst David Feaster upgraded Columbia Banking (COLB) to Strong Buy from Outperform with a price target of $31, up from $27. Recent meetings focused on the the strategic outlook for the company following the closing of the Pacific Premier deal, with management confronting several misperceptions around the bank, including the likelihood of additional M&A near-term, EPS growth exclusive of balance sheet growth, and timing of potential capital return, the analyst tells investors in a research note. The firm believes M&A is on pause for “some time,” but can drive EPS growth in spite of a stable balance sheet, and thinks capital return is likely on the horizon, while the bank should return toward the legacy Columbia culture and balance sheet.