Columbia Banking downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo downgraded Columbia Banking to Equal Weight from Overweight with a price target of $25, down from $28, following the Q4 report. The bank’s net interest income inflection has been pushed out to 2025, the analyst tells investors in a research note. While ultimately the shares could trade at a premium to peers, reflecting a higher profitability profile, near-term earnings pressure, combined with the potential for “credit noise” from either FinPac or Pacific Northwest CRE, likely keeps Columbia’s near-term valuations range-bound, contends the firm.