‘Reasonable’ take-out value implies 15%-30% upside for SBA, says Jefferies

After Bloomberg recently reported that SBA Communications (SBAC) is exploring a sale, Jefferies said SBA offers meaningful scale, but screens below American Tower (AMT) and Crown Castle (CCI) on platform quality due to its smaller footprint, higher leverage, and greater emerging-market exposure. The firm, which calls SBA “a credible take-out candidate,” sees 15%-30% upside potential implied by what it would view as a “reasonable take-out value,” but still would expect “a meaningful discount” to comparable transactions in 2021-2022, the analyst tells investors. Jefferies has a Hold rating and $182 price target on SBA shares.