BofA Downgrades SBA Communications to Neutral from Buy, Sets New Price Target of $230

BofA downgraded SBA Communications (SBAC) to Neutral from Buy with a price target of $230, down from $260. The downgrade was not specified.

In a significant development, Bank of America (BofA) has downgraded SBA Communications (SBAC) from a "Buy" rating to "Neutral," adjusting the price target from $260 to $230. The downgrade was announced on July 2, 2025, without specifying the exact reasons for the change. This move comes amidst a period of strong financial performance for SBA Communications, which recently reported quarterly earnings that exceeded analyst expectations.

SBA Communications reported earnings per share (EPS) of $3.17 for the quarter, surpassing analysts' estimates by $0.07. The company also saw a revenue increase of 5.8% year-over-year to $698.98 million. Despite these positive financial results, the downgrade by BofA suggests that the investment bank has concerns that may not be immediately apparent from the latest earnings report.

The stock has been the subject of increased institutional interest, with notable purchases by Allstate Corp and several hedge funds in the first quarter. Allstate Corp increased its stake in SBA Communications by 37.3% to own 4,383 shares worth $964,000. Other institutional investors, such as Independence Bank of Kentucky, Stone House Investment Management LLC, Allworth Financial LP, NBC Securities Inc., and Zions Bancorporation National Association UT, have also made significant purchases or increased their holdings in the company.

SBA Communications has set its fiscal year 2025 guidance at an EPS of $12.57, with analysts on average anticipating this level of performance. The company also recently announced a quarterly dividend of $1.11, payable on September 18, 2025, representing an annualized dividend of $4.44 and a yield of 2.0%.

Analyst ratings for SBA Communications remain mixed, with a consensus rating of "Moderate Buy" and a price target of $258.25. Several research firms have weighed in on the stock, with Scotiabank setting a "sector perform" rating and a $252.00 price target, while Deutsche Bank Aktiengesellschaft downgraded the stock to a "hold" rating with a $247.00 price target. BMO Capital Markets, Citigroup, and Morgan Stanley have also provided ratings and price targets, reflecting a range of opinions on the stock's potential.

The recent downgrade by BofA may indicate that the investment bank has identified risks or challenges that could impact SBA Communications' future performance. Investors should closely monitor the company's upcoming earnings reports and any additional analyst coverage for further insights into the reasons behind the downgrade.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-allstate-corp-grows-stake-in-sba-communications-corporation-sbac-2025-08-25/