Balanced Outlook for SBA Communications: Hold Rating Amid Growth Potential and Caution

Morgan Stanley analyst Benjamin Swinburne maintained a Hold rating on SBA Communications (SBAC – Research Report) today and set a price target of $240.00.

Benjamin Swinburne’s rating is based on a combination of factors that reflect both potential and caution for SBA Communications. While the company’s first-quarter results met expectations, there is an encouraging increase in the domestic leasing backlog, suggesting potential for organic revenue growth in the U.S. as the year progresses. This aligns with the broader industry outlook that anticipates growth acceleration in 2026 after a challenging 2025.
However, despite the positive indicators, the company’s current growth in adjusted funds from operations (AFFO) is lower compared to peers, which tempers the enthusiasm for a more aggressive rating. Additionally, while the shares trade at a discount, the balance between potential re-rating and near-term growth prospects leads to a Hold rating. The ongoing share buybacks and strategic acquisitions, such as the upcoming Millicom acquisition, also play a role in maintaining this balanced view.

In another report released today, BMO Capital also maintained a Hold rating on the stock with a $240.00 price target.