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Investing.com - Piper Sandler has raised its price target on Columbia Banking System (NASDAQ:COLB) to $35.00 from $32.00 while maintaining an Overweight rating on the stock. The bank, currently valued at $5.63 billion, has demonstrated strong financial health with a notable 5.38% dividend yield and a 29-year track record of consistent dividend payments, according to InvestingPro data.
The price target adjustment follows Columbia Banking System’s acquisition of Pacific Premier Bancorp (PPBI), which closed on August 31, 2025.
Piper Sandler revised its earnings per share estimates for Columbia Banking to $2.54 for 2025 and $3.16 for 2026, compared to previous estimates of $2.64 and $2.95, respectively. The firm also introduced a 2027 EPS estimate of $3.36 to capture the full-year benefit of expected cost savings of 30%.
The new $35 price target reflects 11.0x Piper Sandler’s 2026 EPS estimate, which the firm notes is consistent with peers at 10.9x despite Columbia Banking’s above-average and improving return on assets outlook.
Piper Sandler indicated that ongoing expense control, balance sheet remixing, a likely buyback, and comfort with what it views as a clean, straightforward, accretive acquisition should help close Columbia Banking System’s valuation discount. For deeper insights into COLB’s valuation metrics and additional ProTips, visit InvestingPro, where you’ll find comprehensive research reports and expert analysis.
In other recent news, Interactive Brokers Group Inc is set to join the S&P 500 index, replacing Walgreens Boots Alliance Inc. This change, announced by S&P Dow Jones Indices, will occur before the market opens on August 28. Walgreens is being removed from the index due to its acquisition by Sycamore Partners, which is expected to close soon. Columbia Banking System, Inc. has announced a quarterly cash dividend of $0.36 per share, payable on September 15, 2025. The company is also undergoing a brand transition, with Umpqua Bank renamed to Columbia Bank as of July 1, 2025. Additionally, Columbia Banking System and Pacific Premier Bancorp, Inc. have received regulatory approvals for their merger, anticipated to finalize by August 31, 2025. Columbia Bank has appointed Ivan Seda as Executive Vice President and Deputy Chief Financial Officer. Meanwhile, DA Davidson has maintained a Neutral rating and a $26.00 price target for Columbia Banking System, citing improvements in net interest margin and cost control.
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