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Investing.com - SBA Communications (NASDAQ:SBAC) maintained its Buy rating and $275.00 price target at UBS following the company’s quarterly results that exceeded expectations. The stock currently trades at $198.75, representing potential upside of nearly 40% to UBS’s target. According to InvestingPro data, SBAC has a P/E ratio of 24.3 with a notably low PEG ratio of 0.33, suggesting it’s trading at an attractive valuation relative to its growth prospects.
UBS highlighted the company’s services revenues, which increased approximately 80% year-over-year, while new leasing activity showed slight acceleration. This performance aligns with SBAC’s overall revenue growth of 4.82% over the last twelve months. SBA Communications adjusted its guidance to account for transaction timing, including the October 15 closure of its Canada sale and the completion of the Millicom acquisition in October.
The company announced a new 10-year master lease agreement with Verizon that includes minimum growth commitments, supporting mid-single-digit growth. For 2025, management continues to expect 4.8% gross and 0.9% net organic site rental revenue growth in the U.S., while raising its organic international growth forecast to 7.7% gross and 0.5% net growth from previous estimates of 7.3% and 0.2%. As a prominent player in the Specialized REITs industry with a market cap of $21.32 billion, SBAC has consistently rewarded shareholders, having raised its dividend for 6 consecutive years with a current yield of 2.29%.
SBA Communications projects these developments will drive 1% EBITDA growth and approximately 3% AFFO per share declines for 2025, an improvement from the prior outlook of +1%/-4%. The company repurchased $154 million worth of shares in the third quarter, with an additional $40 million repurchased in October. InvestingPro analysis indicates SBAC may be slightly overvalued based on its Fair Value assessment, though analysts maintain optimistic price targets with a high target of $280.
UBS expects management will remain opportunistic with share buybacks, estimating $100-150 million per quarter over the next twelve months while maintaining leverage at 6-7x and working toward investment grade status. Despite these positive developments, SBAC’s stock has fallen significantly over the last three months, now trading 19% below its 52-week high of $245.16. Investors seeking deeper insights can access comprehensive analysis through InvestingPro’s Research Report, one of 1,400+ detailed company assessments that transform complex financial data into actionable intelligence.
In other recent news, SBA Communications reported its third-quarter 2025 earnings, surpassing analysts’ expectations. The company posted an earnings per share (EPS) of $2.20, slightly above the forecast of $2.19. Additionally, SBA Communications exceeded revenue projections by reporting $732.33 million, compared to the anticipated $714.12 million. In related developments, BMO Capital adjusted its price target for SBA Communications, lowering it to $210 from $215 while maintaining a Market Perform rating. The firm highlighted that SBA Communications delivered a modest beat in its third-quarter EBITDA and AFFO. This performance was attributed to lower churn and better-than-expected international results, contributing to upside in domestic net organic growth. These recent developments reflect the company’s ongoing financial performance and analyst perspectives.
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