SBA Communications: Morgan Stanley Maintains Equal-Weight, Raises PT to $260 from $255.

SBA Communications: Morgan Stanley Maintains Equal-Weight, Raises PT to $260 from $255.

July 2, 2025

Morgan Stanley has adjusted its price target for SBA Communications (SBAC) to $260, up from the previous target of $255. The investment bank maintains an Equal Weight rating for the company, reflecting its optimism about the future performance of U.S. Tower REITs, including SBAC. This upward revision is based on positive trends in tenant activity and projections for leasing revenue growth in the latter half of 2025 and into 2026 [1].

The average one-year price target for SBAC, based on the consensus of 17 analysts, is $256.53, with a high estimate of $285.00 and a low estimate of $225.00. This average target implies an upside of 9.45% from the current price of $234.37. The consensus recommendation from 20 brokerage firms is "Outperform," suggesting that the majority of analysts are bullish on SBAC's prospects [2].

SBAC's recent financial performance has been strong, with positive developments such as a new share repurchase plan of $1.5 billion and a 13% increase in the quarterly dividend. However, the company has also faced challenges, including elevated international churn and a negative straight-line revenue trend. The first quarter saw a 4.2% churn, with $20 million related to the Sprint consolidation, and the company is expected to experience $50 million to $52 million in churn for the full year 2025 [2].

Despite these challenges, Morgan Stanley's revised price target and positive outlook reflect confidence in SBAC's ability to navigate these issues and capitalize on growth opportunities in the U.S. Tower REIT market. Investors should closely monitor SBAC's earnings reports and other developments to gauge the company's progress in meeting these expectations.

References:
[1] https://www.marketscreener.com/news/morgan-stanley-adjusts-sba-communications-price-target-to-260-from-255-maintains-equal-weight-rat-ce7c5cddd88ff624
[2] https://www.gurufocus.com/news/2993401/morgan-stanley-adjusts-sba-communications-sbac-price-target-to-260-sbac-stock-news