SBA Communications: Buy Rating Affirmed Amid Positive Growth Outlook and Raised Revenue Forecasts

TD Cowen analyst Michael Elias has reiterated their bullish stance on SBAC stock, giving a Buy rating on April 16.

Michael Elias has given his Buy rating due to a combination of factors including SBA Communications’ decision to maintain its 2025 organic revenue growth guidance while also raising its forecasts for revenue, EBITDA, and AFFO per share. The management’s commentary suggests a moderate rise in U.S. carrier activity, with expectations for new leasing to increase towards the end of 2025, which supports a positive long-term outlook.
Despite the mixed results in the first quarter of 2025, the company has reported a healthy level of growth in new leasing, the highest in recent years, and has seen an increase in its backlog since the end of 2024. The management expects domestic new leasing to grow as the year progresses, driven by factors such as colocation and regulatory influences. Additionally, SBA Communications has raised its site development revenue guidance, indicating faster-than-expected activity from one customer, and has the capacity to take on more services work, which further justifies the Buy rating.

According to TipRanks, Elias is a 3-star analyst with an average return of 1.4% and a 42.86% success rate. Elias covers the Real Estate sector, focusing on stocks such as Digital Realty, DigitalBridge Group, and Equinix.