UPDATE: D.A. Davidson Downgrades West Coast Bancorp to Neutral, Lowers PT

In a report published Wednesday, D.A. Davidson & Co. downgraded its rating on West Coast Bancorp

from Buy to Neutral, and slightly lowered its price target from $24.00 to $23.10. D.A. Davidson noted, “With COLB [Columbia Banking System] as one of our favorite stocks to own, another investment option would be to maintain or initiate a position in WCBO. Should owners of WCBO hold onto shares until deal closing, there remains modest upside at current price levels. After closing, investors are compensated in part with COLB shares (the remaining portion in cash), a solid core holding of a Pacific Northwest bank with a strong competitive position and considerable scale. We also leave open the possibility of a superior bid, providing 10% upside should a $25 offer be presented. We view most potential outcomes positively, with some risk being that the deal falls apart and no other suitors come forward. However, we view this outcome as remote.” West Coast Bancorp closed on Tuesday at $22.70.