Analyst Michael Rollins of Citi maintained a Buy rating on SBA Communications (SBAC – Research Report), with a price target of $250.00.
Michael Rollins has given his Buy rating due to a combination of factors including SBA Communications’ positive leasing direction and the potential for improved organic growth in the future. The company reported favorable fourth-quarter results, with cash leasing revenue aligning with expectations and additional support from one-time payments in its international segment. Although the guidance for 2025 indicates a slower growth in leasing revenue, the company is managing elevated merger-related churn effectively.
Rollins notes that T-Mobile’s contribution to colocation activity is promising, despite delays in revenue realization. The management’s cautious approach to capital allocation and buybacks, along with maintaining net debt leverage, provides flexibility for potential mergers and acquisitions. The domestic leasing outlook remains stable, and improvements are expected towards the end of 2025, leading to a positive outlook for 2026. This supports the anticipated organic growth rate of 4-6% annually, excluding merger-related impacts.
In another report released today, Morgan Stanley also reiterated a Buy rating on the stock with a $252.00 price target.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SBAC in relation to earlier this year.