Jefferies Increases Columbia Banking System Price Target to $32 Following Solid Q4 Performance

Columbia Banking System (NASDAQ: COLB) reported a fourth-quarter performance that prompted Jefferies to increase its price target on the stock to $32.00 from $30.00, while retaining a Hold rating. The stock, currently trading near $29.67, is close to its 52-week peak of $30.27, and according to InvestingPro Fair Value calculations, it appears modestly overvalued. Jefferies characterized the quarterly results as solid but noted mixed guidance for the fiscal year 2026. The bank’s net interest income for the quarter outperformed both Jefferies’ internal expectations and consensus forecasts. However, this gain included benefits from acquisition-related, one-time items. Columbia Banking System posted core earnings per share of $0.82, well above Jefferies’ estimate of $0.67 and consensus at $0.71. Core pre-provision net revenue totaled $342 million, exceeding Jefferies’ projection of $302 million and consensus at $317 million. The bank’s valuation metrics reflect a price-to-earnings ratio of 13.46 and a dividend yield of 4.99%. The company has a longstanding dividend track record, paying out annually for 29 consecutive years, which InvestingPro data highlights as an indicator of stability. In terms of capital management, Columbia Banking System repurchased $100 million worth of its shares and announced plans to elevate buybacks to a range of $150 million to $200 million per quarter during 2026, deploying excess capital effectively. Management also anticipates a balanced approach to its balance sheet, expecting loan growth to remain approximately flat due to reduced transaction balances. The bank’s market capitalization stands at $8.87 billion, reflecting a noteworthy price appreciation of nearly 25% over the past six months. Loan growth did not meet expectations, partly due to an approximate $300 million runoff in the transactional portfolio. Deposit growth also fell short of forecasts. Despite softer top-line growth, earnings strength was supported by robust fee income streams and disciplined expense management. Credit quality remained stable during the period, indicating sound asset performance. Additional analysis is available through the InvestingPro platform’s comprehensive Pro Research Report, which covers Columbia Banking System alongside over 1,400 other U.S. equities. Separately, Columbia Banking System's 2025 fourth-quarter results have outstripped analyst forecasts, delivering operating earnings per share of $0.82 versus a consensus estimate of $0.72. Revenue reached $717 million, surpassing an expected $695.26 million. This improvement partially reflects the impact of the August 31 closing of the Pacific Premier acquisition. Reacting to these results, RBC Capital increased its price target for Columbia Banking System from $30 to $32, maintaining a Sector Perform rating. This target revision underscores the positive financial influence of the recent acquisition. However, despite beating earnings and revenue predictions, shares declined in after-hours trading. Investors monitoring Columbia Banking System should weigh these developments in the context of its strategic acquisitions, capital return plans, and mixed growth signals as they consider future positioning within the financial sector.