SBA Communications Corporation (SBAC), headquartered in Boca Raton, Florida, owns and operates wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. Valued at $22.2 billion by market cap, the company offers site leasing and development, construction, and consulting services. SBAC leases antenna space on its multi-tenant towers to a variety of wireless service providers under long-term lease contracts.
Shares of this leading independent owner and operator of wireless communications infrastructure have underperformed the broader market over the past year. SBAC has gained marginally over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.8%. In 2025, SBAC stock is up 2%, compared to the SPX’s 4.5% rise on a YTD basis.
Narrowing the focus, SBAC’s underperformance is also apparent compared to the iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT). The exchange-traded fund has gained about 21.4% over the past year. Moreover, the ETF’s 2.6% gains on a YTD basis outshine the stock’s returns over the same time frame.
On Oct. 28, SBAC shares closed down marginally after reporting its Q3 results. Its AFFO of $3.32 matched analysts’ expectations. The company’s revenue was $667.6 million, missing Wall Street forecasts of $669 million. SBAC expects full-year AFFO in the range of $13.20 to $13.45, and expects revenue to be between $2.66 billion and $2.68 billion.
For the current fiscal year, ended in December 2024, analysts expect SBAC’s FFO to decline 4.6% to $12.57 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 19 analysts covering SBAC stock, the consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, two “Moderate Buys,” and seven “Holds.”
This configuration is more bullish than a month ago, with nine analysts suggesting a “Strong Buy.”
On Feb. 4, BMO Capital analyst Ari Klein maintained a “Hold” rating on SBAC with a price target of $220, implying a potential upside of 5.9% from current levels.
The mean price target of $246.28 represents an 18.5% premium to SBAC’s current price levels. The Street-high price target of $280 suggests an ambitious upside potential of 34.8%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.More news from Barchart
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