DA Davidson revised its price projection for Columbia Banking System to $32.50, up from the previous $30.00, on Friday while keeping its Neutral rating intact. This updated target is positioned between the analyst consensus range, with the highest target noted at $35 and the lowest at $28. Current market valuation data from InvestingPro indicates Columbia Banking System’s shares trade at a price-to-earnings (P/E) ratio of 13.4.
The research institution identified a revitalized net interest margin (NIM) and a dedicated share repurchase program as pivotal factors reshaping the bank’s outlook. These developments mark a significant departure from a prior narrative characterized by stagnant growth and restricted capital returns. This shift correlates with the bank’s strong market performance, evidenced by a 25% price increase over the previous six months, as reported by InvestingPro.
Jeff Rulis, an analyst at DA Davidson, elevated forward earnings per share (EPS) expectations following Columbia Banking System's fourth quarter results for the fiscal year 2025. The firm acknowledged that although a full realization of growth prospects may require additional time, the recent quarterly results suggest that earlier forecasts of net balance sheet runoff were potentially too pessimistic.
Despite raising the price target, DA Davidson preserved its Neutral stance on Columbia Banking System shares, indicating a steady view on the equity’s future potential.
Other analyst firms have also responded positively to Columbia Banking System’s recent financial performance. The company reported a strong Q4 2025, exceeding earnings estimates with operating EPS of $0.82 compared to the anticipated $0.72, while revenues reached $717 million, surpassing the expected $695.26 million.
Stephens Capital Markets increased its price target to $37.00 from $35.00, maintaining an Overweight rating on the shares. Similarly, Raymond James raised its target to $34.00 from $31.00, citing the recent Pacific Premier Bank (PPBI) acquisition as a key driver for earnings per share growth. Jefferies lifted its target to $32.00 from $30.00, describing the quarter as "decent" despite mixed guidance for fiscal year 2026. RBC Capital Markets also raised its price target to $32.00 from $30.00, emphasizing the positive impact of the Pacific Premier acquisition on expected performance.
These analyst movements collectively highlight a favorable consensus regarding Columbia Banking System’s trajectory, underpinned by recent financial strength and strategic initiatives.