Stephens has elevated its price target for Columbia Banking System (NASDAQ:COLB) to $37 from the previous $35, accompanied by the retention of an Overweight recommendation. This updated target indicates a roughly 25% potential price appreciation from COLB's latest trading figure near $29.67, close to its 52-week peak of $30.27. Notably, the stock has demonstrated significant momentum, delivering a 25% total return over the last six months.
The revision in price forecast follows the company’s impressive fourth-quarter operating earnings per share of $0.82. This figure not only surpassed Stephens’ projection of $0.74 but also exceeded the consensus estimate of $0.72 among Wall Street analysts. According to InvestingPro data, Columbia Banking System reported diluted earnings per share of $2.30 over the past twelve months. Looking forward, analysts anticipate continued profitability with a forecasted EPS of $2.37 for the 2026 fiscal year.
Revenue metrics further bolster the optimistic perspective, as the bank disclosed a pre-provision net revenue (PPNR) of $344.0 million. This outcome was 9% greater than consensus expectations and 4.2% above Stephens’ own highest estimate within the analyst community. The outperformance was primarily attributed to net interest income, which exceeded consensus forecasts by 3.1%, along with a net interest margin that outstripped expectations by 13 basis points.
Stephens also highlighted Columbia Banking System’s outlook on loan growth dynamics. The bank anticipates stable loan volumes in 2026, with a planned retention of approximately 75%-80% of transactional multifamily runoff. This outlook counters prevailing bearish sentiment on the stock, illustrating confidence in Columbia’s loan portfolio management.
Regarding capital return to shareholders, Columbia Banking System executed nearly $100 million of share repurchases in the fourth quarter and is expected to sustain buyback activity throughout the year. The net interest margin is projected to encounter slight compression in the initial quarter but is forecasted to recover in subsequent periods. InvestingPro underscores COLB’s high shareholder yield status and reports a streak of 29 consecutive years of dividend payments, currently yielding 4.99%.
Additional insights from recent analyses reflect a favorable market stance. Following the strong fourth-quarter 2025 results, Raymond James revised its price target upward to $34, maintaining a Strong Buy rating. The firm pointed to the completed Pacific Premier Bank Incorporated (PPBI) acquisition and its anticipated integration as catalysts for EPS growth. Jefferies adjusted their target to $32, labeling the quarter as "decent" with a mix of guidance for fiscal 2026 and holding a Hold rating. RBC Capital also upgraded its target to $32, citing the impact of the Pacific Premier acquisition as a positive factor.
These analyst perspectives collectively reinforce a bullish outlook on Columbia Banking System's recent financial accomplishments and anticipated future earnings power. Investors interested in detailed evaluations can refer to the comprehensive Pro Research Report available for Columbia Banking System and over 1,400 other publicly traded U.S. stocks.