Raymond James Upgrades SBA Communications (SBAC) to Strong Buy as a Valuation Play Ahead of Catalysts
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(Updated - March 5, 2021 7:53 AM EST)
Raymond James analyst Richard Prentiss upgraded SBA Communications (NASDAQ: SBAC) from Outperform to Strong Buy with an unchanged price target of $309.00 after the selloff and ahead of positive catalysts. The call is that the market has digested 4Q20 results and 2021 guidance by tower companies that reflect current thoughts on the size/timing of: 1) TMUS/S churn, 2) the deployment of CBand spectrum and, 3) the DISH 5G network build-out while being pressured by interest rates creeping up and the re-opening trade that has moved money away from safer names like tower stocks.
The analyst stated "the resulting valuation (i.e., multiple of 2022E AFFO/Share and FAD/Share) makes SBAC attractive versus historical levels and REITs in general as well as specific REIT sectors. We also feel that over time an increasing level of REIT-Dedicated funds will invest in infrastructure stocks. And the analyst days next week at Verizon (3/10), T-Mobile (3/11) and AT&T (3/12) may provide positive catalysts for tower stocks."
Shares of SBA Communications closed at $235.92 yesterday.
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