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Investing.com - KeyBanc raised its price target on SBA Communications (NASDAQ:SBAC) to $325.00 from $280.00 on Wednesday, while maintaining an Overweight rating on the stock. The company, currently trading at $199.18, maintains a solid financial health score of "GOOD" according to InvestingPro analysis.
The price target increase represents a significant upward revision, suggesting KeyBanc sees additional upside potential for the telecommunications infrastructure company despite certain industry headwinds. With a strong gross profit margin of 76% and consistent dividend growth of 13.3% over the last twelve months, the company demonstrates robust operational efficiency.
KeyBanc noted challenges in the leasing environment for SBA Communications, specifically citing the AT&T/DISH spectrum deal as a factor that could impact the company’s growth trajectory.
The firm acknowledged that its thesis regarding SBA returning to mid-single-digit AFFO (Adjusted Funds From Operations) per share growth by 2027 faces challenges due to incremental DISH churn, with that growth milestone now expected in 2028 instead.
Despite these concerns, KeyBanc remains comfortable with its Overweight position, noting that at approximately 15x 2026 AFFO per share, the market has already priced in these factors, and the firm expects double-digit dividend per share growth and accelerated share repurchases.
In other recent news, SBA Communications reported its second-quarter 2025 earnings, with revenue exceeding expectations. The company posted revenue of $698.98 million, surpassing the projected $670.33 million by 4.27%. However, earnings per share (EPS) slightly missed the mark, coming in at $2.09 compared to the forecasted $2.11. Despite this, SBA Communications maintained its 2025 domestic new lease and amendment revenue guidance of $35-39 million. JPMorgan adjusted its price target for SBA Communications to $245, citing solid overall performance, although new leasing revenue fell short of estimates. Meanwhile, JMP Securities raised its price target to $280, maintaining a Market Outperform rating, with the new target based on 21 times the 2026 estimated Adjusted Funds From Operations (AFFO). These developments reflect continued investor interest and varying analyst perspectives on the company’s future performance.
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