SBA Communications price target raised to $230 from $227 at KeyBanc

KeyBanc raised the firm’s price target on SBA Communications to $230 from $227 and keeps an Overweight rating on the shares following Q2 results that were in line with expectations. The firm finds the setup on SBA tricky. Net, KeyBanc believes expectations around a leasing reacceleration are least aggressive for SBA among the Big 3 Towers, expectations around interest expense headwinds are known, and that the company can return to a mid- to high-single-digit AFFO/share growth rate in 2027. With the stock currently at a depressed valuation and given underperformance year-to-date, KeyBanc continues to find the risk/reward attractive.