Raymond James has revised upwards its price forecast for Columbia Banking System (NASDAQ:COLB), setting a new target of $34.00 from the previous $31.00, while reaffirming its Strong Buy stance following the release of the bank's fourth-quarter 2025 financial performance. This updated target highlights a considerable upside potential from the current trading price near $29.67, approaching the stock's 52-week peak of approximately $30.27.
The investment firm pinpointed the completion of the Pacific Premier Bank (PPBI) acquisition and the imminent conversion process as pivotal junctures driving Columbia Banking’s fundamental capabilities moving forward. Anticipation is for an acceleration in earnings per share (EPS) growth, largely independent of significant expansion in the balance sheet. Raymond James emphasizes that near-term gains are expected to result primarily from strategic reallocation and repricing of balance sheet assets and liabilities.
Supporting this outlook, data from InvestingPro indicates that COLB’s stock has experienced notable momentum, delivering a near 25% appreciation over the preceding half-year, a sign that market participants may be pricing in this upward trajectory.
Operational guidance issued by Columbia Banking is viewed by Raymond James as both attainable and potentially conservative, especially in areas such as core deposit accumulation and expense control. Projections include a return on average assets (ROAA) of 1.35% and a return on average tangible common equity (ROATCE) exceeding 18% once full synergies are realized.
These forecasts align with InvestingPro figures which list the bank’s current ROAA at 0.93% and return on common equity at 8%, with analysts estimating a fiscal year 2026 EPS of $2.37. Moreover, the bank's approach to capital allocation is expected to become increasingly shareholder-friendly, with share repurchases exceeding 6% of outstanding shares anticipated within the year, all while sustaining capital accretion.
Raymond James further underscores Columbia Banking System’s combination of above-average profitability and a valuation multiple considered attractive, citing an 8.7 times projected operating EPS for 2027 compared to an industry peer median of roughly 10 times. Additional InvestingPro data confirm a price-to-earnings (P/E) ratio of 13.46 for COLB, alongside a strong dividend track record of 29 consecutive years and a current yield near 4.99%, reinforcing appeal for investors prioritizing income stability.
The firm also highlights ongoing opportunities to optimize the balance sheet, a yield approaching 5%, and meaningful share repurchase programs as factors contributing to a favorable risk-reward proposition for Columbia Banking System.
These elements are elaborated upon in depth within the comprehensive Pro Research Report on Columbia Banking System available on InvestingPro, which provides detailed analysis across more than 1,400 U.S. equities.
In additional developments, Columbia Banking System posted impressive fourth-quarter 2025 results surpassing analyst expectations, reporting operating EPS of $0.82 compared to the forecasted $0.72, and revenues totaling $717 million versus an estimated $695.26 million. Following these strong results, other notable brokerages have updated their outlooks.
Jefferies raised its price target to $32.00 from $30.00 while maintaining a Hold rating, citing that net interest income benefitted from non-recurring acquisition-related factors. Similarly, RBC Capital elevated its price target to $32.00 from $30.00 and upheld a Sector Perform rating, noting the positive effects stemming from the August 31 close of the Pacific Premier acquisition on quarterly results. These analyst updates align with a phase of significant activity and growth for Columbia Banking System.