RBC Capital analyst Jon Arfstrom maintains $Columbia Banking System (COLB.US)$ with a hold rating, and adjusts the target price from $34 to $32.
According to TipRanks data, the analyst has a success rate of 57.0% and a total average return of 15.1% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Columbia Banking System (COLB.US)$'s main analysts recently are as follows:
Heading into the fourth quarter earnings season, regional banks are anticipated to demonstrate modest growth in loans and deposits, with a slight decline in net interest margins, and stable overall credit trends. Beyond the current earnings results, the focus is expected to shift towards projections for 2025, which are likely to reflect a continuing environment of elevated interest rates. Overall, the outlook for regional banks and their stocks remains positive into 2025, although this enthusiasm is moderated by expectations of a less aggressive approach to rate cuts by the Federal Reserve.
With adjustments in the rate environment and economic outlook in the past months, along with growing optimism due to changes in the U.S. administration, the forthcoming focus for regional banks is likely to be projected towards their 2025 forecasts. Solid Q4 results are anticipated for the sector; nevertheless, key subjects for future discussions include the trajectory of deposit betas, net interest margins, and potential growth strategies. The primary modifications to forecasting models mainly involve minor refinements to margin assumptions and some reduced expectations for near-term loan growth.
The more positive outlook on Columbia Banking's future lies in anticipation of notable net interest income inflection post Q1 2025, a steeper curve, favorable early deposit betas, and regulatory relief. The bank's deposit franchise, viewed as 'underappreciated' and available at a historical discount, coupled with $8 billion of high-cost funding repricing through Q1 2025, contributes to this constructive perspective.
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