SBA Communications stock price target lowered to $210 at BMO Capital

Investing.com - BMO Capital lowered its price target on SBA Communications (NASDAQ:SBAC) to $210 from $215 while maintaining a Market Perform rating on Tuesday. The stock, currently trading at $193.52, has fallen 19.23% over the past six months, with a 52-week range of $185.45-$245.16. InvestingPro data indicates SBA is trading at a PEG ratio of 0.33, suggesting potential undervaluation relative to its growth rate.

The firm noted that SBA Communications delivered a modest third-quarter EBITDA and AFFO beat, with upside to domestic net organic growth primarily due to lower churn and better-than-expected international performance. With a market capitalization of $20.78 billion and a current P/E ratio of 23.45, SBA offers investors a dividend yield of 2.29%. InvestingPro analysis reveals additional insights among its 12+ tips for this specialized REIT.

BMO Capital highlighted that domestic leasing picked up as anticipated, with SBA Communications set to exit 2025 at a low-$40 million run rate, though the firm forecasts 2026 at approximately $40 million.

The research firm viewed positively SBA’s newly announced Master Lease Agreement with Verizon, which enhances visibility, particularly for colocations, amid uncertainty in carrier spending.

Despite these positive developments, BMO Capital remains on the sidelines as DISH is expected to churn in 2027/2028, likely keeping AFFO per share growth muted for the next few years.

In other recent news, SBA Communications Corp reported its third-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $2.20, slightly above the forecasted $2.19. Additionally, SBA Communications exceeded revenue projections by reporting $732.33 million, compared to the anticipated $714.12 million. These results highlight the company’s strong financial performance during the quarter. The earnings announcement was followed by a positive reaction in aftermarket trading. This development is part of the ongoing updates from SBA Communications, reflecting its recent achievements. Investors may find these financial results noteworthy as they consider the company’s future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.