SBA Communications (SBAC) Bullish Stance Maintained at Nomura Despite Slowing 2015 Growth

Nomura Securities analyst Adam Ilkowitz reiterated a Buy rating and $115 price target on SBA Communications (NASDAQ: SBAC) following results although 2015 guidance features slowing growth.

Ilkowitz commented, "SBAC reported AFFO per share of $1.33, beating our $1.30 estimate and consensus of $1.27 due to a 6c benefit in the quarter from non-cash interest expense. Site Leasing revenue and Tower Cash Flow came in just ahead of our expectations while Site Development was stronger than guidance and our estimates. The mix to lower-margin Site Development revenue impacted profitability as did higher SG&A expenses than we expected. Leverage rose to 6.9x LQA EBITDA from 6.7x in 2Q14 due to the cost of redeeming warrants related to the 4% convertible note. Guidance for 2015 from SBAC points to slowing net organic growth; we estimate ahead of the call that 10% in 2014E is slowing to something in the ~8% range in 2015E. On the call, we expect a focus on an outlook for churn in US."

For an analyst ratings summary and ratings history on SBA Communications click here. For more ratings news on SBA Communications click here.

Shares of SBA Communications closed at $110.69 yesterday.

You May Also Be Interested In

• AudioEye (AEYE) PT Raised to $18.50 at B.Riley
• Quest Diagnostics (DGX) PT Raised to $150 at Truist Securities
• Fox Factory Holding (FOXF) PT Lowered to $45 at Stifel