SBA Communications (SBAC) is the Best House in a Good Neighborhood, PT to $389 at Morgan Stanley

Morgan Stanley analyst Simon Flannery lowered the price target on SBA Communications (NASDAQ: SBAC) to $389.00 (from $412.00) but sees the company as the best house in a good neighborhood, projecting 18% total return.

The group has outperformed the S&P 500 by 5pp in recent months and the analyst reiterated an Overweight rating, stating "Tower management teams remain universally constructive regarding the 5G leasing cycle with 2021's record domestic tower leasing carrying over into 2022 without disruption. We continue to see several years of 5G deployments ahead and expect 2023 gross organic growth to outpace 2022. SBAC is our Top Pick in the group given their leading exposure to domestic tower leasing, supportive contract structures and capital allocation optionality. We also remain Overweight CCI with >10% total returns supported by a >3% dividend yield that will get a 7%+ boost in October."

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