SBA Communications downgraded to Market Perform from Outperform at BMO Capital

BMO Capital analyst Ari Klein downgraded SBA Communications (SBAC) to Market Perform from Outperform with a price target of $230, down from $260. While 2025 should see some improvement in the carrier spending backdrop, BMO expects SBA’s full-year leasing to largely resemble 2024, the analyst tells investors in a research note. The firm says Sprint-related churn will remain a headwind in 2025and 2026, and the recent weakness in Brazil’s Real adds another headwind with meaningful funds from operations share growth unlikely until 2027. While SBA’s valuation is attractive, its growth remains depressed with few near-term catalysts on the horizon, contends BMO.