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On Tuesday, SBA (LON:SBA) Communications Corporation (NASDAQ:SBAC) received a favorable adjustment from Citizens JMP, as their analyst Greg Miller increased the company’s price target from $250.00 to $270.00. The firm reiterated its Market Outperform rating for the company’s shares. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with particularly strong profitability metrics.
SBA Communications recently disclosed their first-quarter results for the year 2025, which marginally exceeded expectations. The company’s guidance was in line with forecasts. The company generated $2.68 billion in revenue over the last twelve months, with a robust EBITDA of $1.79 billion. In his commentary, Miller highlighted the company’s performance amidst economic uncertainty, noting that tower stocks like SBA Communications offer a degree of safety due to their minimal global exposure and the balancing of foreign revenues with corresponding foreign-denominated expenses.
The analyst’s confidence in SBA Communications has been bolstered by a robust leasing backlog, prompting the revised price target. The new target is based on approximately 20 times the estimated adjusted funds from operations (AFFO) for the year 2026. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with a P/E ratio of 32.06x.
Miller’s stance reflects an expectation of continued solid performance from SBA Communications, considering the company’s strategic positioning and financial outlook. The Market Outperform rating suggests that the analyst believes the company’s stock will perform better than the overall market in the near future. InvestingPro data reveals two key insights: the company has raised its dividend for 6 consecutive years, and it maintains a prominent position in the Specialized REITs industry. Subscribers can access 5 additional ProTips and comprehensive analysis in the Pro Research Report.
SBA Communications is a player in the communications infrastructure industry, owning and operating wireless communications towers primarily in the United States. The company’s performance is closely watched by investors interested in the telecommunications sector, which is known for its resilience and steady demand.
The stock market’s reaction to this news will be monitored as investors consider the updated price target and the company’s potential growth trajectory in the telecommunications infrastructure space.
In other recent news, SBA Communications announced its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $1.77, which did not meet the expected $2.11. However, the company’s revenue slightly exceeded expectations, reaching $664.25 million against the forecast of $661.68 million. SBA Communications also reported robust growth in domestic leasing revenue, largely driven by investments from U.S. mobile network operators. The company has exited markets in the Philippines and Colombia, which may impact its international growth. Despite the EPS miss, SBA Communications has raised its full-year outlook for site leasing revenue, tower cash flow, and adjusted EBITDA. The company also closed a portion of a tower acquisition from Millicom International earlier than expected. Analysts from Goldman Sachs and other firms have shown interest in the company’s strategic plans amid increased network investments. SBA Communications’ high debt levels and market exits pose challenges, yet the company remains optimistic about capturing growth opportunities in the wireless network sector.
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