SBA Communications (SBAC) Enters Brazil; Analyst 'Very Positive' on the Move
Tweet
Share
E-mailGet Alerts SBAC Hot Sheet
Price: $182.23 +0.94%
Rating Summary:
20 Buy, 14 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
20 Buy, 14 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Shares of SBA Communications Corporation (Nasdaq: SBAC) are mildly lower early Wednesday despite announcing that it acquired 800 freestanding wireless towers from one of the leading broadband wireless carriers in Brazil.
SBA Communications said the consideration for the acquisition is R$362.8 million payable from cash on hand and borrowings under the Company's Revolving Credit Facility. SBA expects these assets will produce approximately R$19 to R$23 million in Tower Cash Flow for the full calendar year 2013 and be immediately accretive to AFFO per share.
"We are very pleased to have acquired these assets," commented Jeffrey A. Stoops, SBA's President and Chief Executive Officer. "We are excited to begin operations in Brazil. This acquisition provides us with a national footprint of high quality towers, including leasing arrangements with all of the major broadband wireless providers, and establishes us as a substantial independent tower owner in an attractive and high growth market."
Analysts at Wells Fargo were positive on the news. "We view this price as fair and, more importantly, view the formal entry into Brazil as a very positive for the SBAC story," Wells Fargo's analyst said. "Recall, SBAC now receives less than 4% of its revenue from outside the US and has publically stated its desire to increase this percentage with greater focus on Latin America." They rate shares at Overweight.
SBA Communications said the consideration for the acquisition is R$362.8 million payable from cash on hand and borrowings under the Company's Revolving Credit Facility. SBA expects these assets will produce approximately R$19 to R$23 million in Tower Cash Flow for the full calendar year 2013 and be immediately accretive to AFFO per share.
"We are very pleased to have acquired these assets," commented Jeffrey A. Stoops, SBA's President and Chief Executive Officer. "We are excited to begin operations in Brazil. This acquisition provides us with a national footprint of high quality towers, including leasing arrangements with all of the major broadband wireless providers, and establishes us as a substantial independent tower owner in an attractive and high growth market."
Analysts at Wells Fargo were positive on the news. "We view this price as fair and, more importantly, view the formal entry into Brazil as a very positive for the SBAC story," Wells Fargo's analyst said. "Recall, SBAC now receives less than 4% of its revenue from outside the US and has publically stated its desire to increase this percentage with greater focus on Latin America." They rate shares at Overweight.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wells Fargo Upgrades Portland General Electric Company (POR) to Overweight
- Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
- Bunker Hill Mining to acquire Silver47 in all-share merger deal
Create E-mail Alert Related Categories
Analyst Comments, Corporate News, Mergers and AcquisitionsRelated Entities
Wells FargoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
