Columbia Banking rises after Raymond James upgrades to 'strong buy'

Shares of regional lender Columbia Banking COLB.O up 2% at $26.58

Raymond James upgrades COLB to "strong buy" from "outperform" following investor meetings after the closing of Pacific Premier Bancorp deal

Brokerage also raises price target on COLB to $31 from $27 representing a 19% upside to the stock's last close

Raymond James says management confronted several misperceptions around the bank, including likelihood of additional M&A near-term and timing of potential capital return

Brokerage expects M&A to be on pause for some time, which can drive EPS growth despite a stable balance sheet

Capital return is likely on the horizon as well, Raymond James says

Two of the 12 analysts rate the stock buy or higher and 10 "hold"; their median PT is $28- LSEG data

Including session's move, COLB down 2.14% YTD