Citadel Securities Upgrades SBA Communications (SBAC) to Neutral; Still Cautious on 2012 Expectations
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Price: $185.20 -0.53%
Rating Summary:
20 Buy, 14 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
20 Buy, 14 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Citadel Securities upgraded SBA Communications (NASDAQ: SBAC) to Neutral with a price target of $32.00.
Citadel analyst says, "In light of the recent market “correction” and the observation that the tower stocks – particularly Crown Castle (NYSE: CCI) and SBAC – have proven to be very volatile in past market downturns, we feel it is prudent to lower our target EV/EBITDA multiples for CCI and SBAC. We lower each by half a turn, leading to target multiples of 12.7x for CCI and 14.0x for SBAC; we are reluctant to apply lower multiples at this time given these are now near their historic lows. Applying these target multiples to our 2012 EBITDA estimates, we arrive at target prices of $35 for CCI and $32 for SBAC. Given the limited downside we see for SBAC, we upgrade our rating on the stock to Neutral."
For more ratings news on SBA Communications click here and for the rating history of SBA Communications click here.
Shares of SBA Communications closed at $32.97 yesterday.
Citadel analyst says, "In light of the recent market “correction” and the observation that the tower stocks – particularly Crown Castle (NYSE: CCI) and SBAC – have proven to be very volatile in past market downturns, we feel it is prudent to lower our target EV/EBITDA multiples for CCI and SBAC. We lower each by half a turn, leading to target multiples of 12.7x for CCI and 14.0x for SBAC; we are reluctant to apply lower multiples at this time given these are now near their historic lows. Applying these target multiples to our 2012 EBITDA estimates, we arrive at target prices of $35 for CCI and $32 for SBAC. Given the limited downside we see for SBAC, we upgrade our rating on the stock to Neutral."
For more ratings news on SBA Communications click here and for the rating history of SBA Communications click here.
Shares of SBA Communications closed at $32.97 yesterday.
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