Columbia Banking upgraded to Strong Buy from Outperform at Raymond James

Raymond James analyst David Feaster upgraded Columbia Banking to Strong Buy from Outperform with a price target of $28, down from $34. The analyst sees the the long-term strategic merits of the Umpqua deal and believes the stock’s year-to-date underperformance and Columbia’s discounted valuation are unjustified. While there will be "noise near-term" from the deal closing in Q1, Columbia’s balance sheet has been fully marked and the pro forma balance sheet is one of the most liquid among the group, contends the firm. It believes Columbia will be one of the few banks driving positive operating leverage in 2023.