UPDATE: Wunderlich Upgrades Columbia Banking System to Buy on Anticipated M&A Accretion

In a report published Tuesday, Wunderlich Securities analyst Kevin Reynolds upgraded the rating on Columbia Banking System COLB from Hold to Buy, and raised the price target from $23.00 to $25.00. In the report, Reynolds noted, “Although COLB is scheduled to report 1Q13 results later this week, our upgrade is not a call for an upside surprise in 1Q13 vs. consensus (although this is possible). Rather, our upgrade is an attempt to take advantage of the recent market decline that has created an attractive entry point for the premier community bank in the Pacific Northwest. At current levels, we believe the market has assigned no incremental value to the WCBO deal, which is highly accretive to COLB right out of the gate.” Columbia Banking System closed on Monday at $20.28.