Columbia Banking System stock rating upgraded by KBW on valuation, capital flexibility

Published 10/10/2025, 10:52
Columbia Banking System stock rating upgraded by KBW on valuation, capital flexibility

Investing.com - Keefe, Bruyette & Woods upgraded Columbia Banking System (NASDAQ:COLB) from Market Perform to Outperform on Friday, while raising its price target to $31.00 from $30.00.

The upgrade comes after Columbia Banking System shares have significantly underperformed the broader market over the past 18 months, creating what KBW describes as a "compelling risk/reward setup" for investors. Recent data shows a strong recovery, with the stock posting a 27.49% return over the past six months.

KBW identified five key factors supporting its more positive outlook: the stock’s current low valuation, improved earnings visibility and consistency, capital flexibility with potential for share buybacks, peer-leading returns, and an attractive risk/reward profile. The company maintains strong profitability with a diluted EPS of $2.52 over the last twelve months. InvestingPro subscribers can access 6 additional key tips about COLB’s financial health and growth prospects.

The investment firm’s revised $31 price target, combined with Columbia Banking System’s 5.5% dividend yield, represents a potential total return of 27% for investors.

This marks KBW’s return to an Outperform rating on Columbia Banking System after maintaining a neutral stance on the stock for nearly a year and a half.

In other recent news, Columbia Banking System has reported several key developments. The company completed its acquisition of Pacific Premier Bancorp, which closed on August 31, 2025. Following this acquisition, Piper Sandler raised its price target for Columbia Banking System to $35, maintaining an Overweight rating. Raymond James also upgraded Columbia Banking System’s stock rating from Outperform to Strong Buy, increasing its price target from $27 to $31. This upgrade followed investor meetings where management clarified that additional mergers and acquisitions are likely on pause. Additionally, Columbia Banking System has been added to Raymond James’ Analyst Current Favorites list, citing improved investor sentiment post-acquisition. In executive news, Columbia Bank, a subsidiary of Columbia Banking System, appointed Ivan Seda as Executive Vice President and Deputy Chief Financial Officer. Seda brings extensive financial services experience, having previously worked at Union Bank and BECU. These developments reflect a significant period of transition and strategic positioning for Columbia Banking System.

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