COLB - Truist initiates Columbia Banking at Hold as stock is close to fairly valued

• Truist Securities on Thursday initiated coverage of Columbia Banking System ( NASDAQ: COLB ) with a Hold rating following its merger of equals with Umpqua, as it believes the stock remains close to fairly valued.
• "The financial and strategic merits of the merger are compelling, but there will likely be M&A noise and elevated execution risk discounted in the stock medium term," said analyst Brandon King.
• However, King believes the merger will allow investments that will improve the combined bank's product set, digital platforms, and talent while enhancing long-term profitability.
• Truist's 2023/2024 core EPS estimates for Columbia Banking ( COLB ) are $3.80/$3.95 ( consensus $3.63/$4).
• The research firm set a $33 price target on the stock, implying 10.2% potential upside to its last close.
• Truist's stance is in line with SA Quant's Hold rating , but contrasts bullish sell-side ratings .
• Shares of Columbia Banking ( COLB ) -3.8% in midday trade.
• A day earlier, Wells Fargo initiated coverage of Columbia Banking ( COLB ) at Overweight after the merger closed .

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