Analyst Simon Flannery of Morgan Stanley reiterated a Buy rating on SBA Communications (SBAC – Research Report), retaining the price target of $252.00.
Simon Flannery has given his Buy rating due to a combination of factors including SBA Communications’ strong fourth-quarter results and positive outlook for 2025. The company reported better-than-expected earnings, with significant growth in leasing and services backlogs, indicating robust carrier activity in the U.S. This growth is further supported by increasing demand for towers related to fixed wireless access and new tower constructions planned for Central America.
Despite some challenges such as churn and foreign exchange pressures, SBA’s strategic acquisition of Millicom is expected to enhance revenue and cash flow, providing potential upside. The company’s leverage has reached a record low, reflecting financial strength and flexibility. Additionally, the decision to increase dividends by 13% underscores confidence in future performance. Overall, the risk-reward profile, valuations, and long-term positioning of SBA and the tower industry remain attractive, justifying the Buy rating.
Flannery covers the Communication Services sector, focusing on stocks such as AT&T, BCE, and Iridium Communications. According to TipRanks, Flannery has an average return of 6.3% and a 62.78% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $240.00 price target.