Raymond James Upgrades Columbia Banking To Strong Buy, Raises Target To $31

Core Viewpoint - Raymond James upgraded Columbia Banking System to Strong Buy from Outperform and raised its price target to $31 from $27 following investor meetings [1] Group 1: Management Insights - Management addressed misconceptions about near-term M&A, earnings growth without balance sheet expansion, and timing of capital return [1] - Analysts indicated that M&A is unlikely in the near term, but earnings growth can still be achieved, with capital return expected soon [1] Group 2: Financial Performance and Projections - Columbia has returned to its legacy culture and balance sheet after rebranding, eliminating the executive chairman role, and ongoing balance sheet adjustments [2] - Pro forma profitability is projected at 18.6% ROATCE and 1.37% ROAA in 2026, with a well-covered 5.4% dividend yield [2] - Analysts noted the likelihood of a buyback later this year, suggesting a highly favorable risk-reward profile [2]