On Tuesday, KeyBanc Capital Markets reiterated its Overweight rating on SBA Communications (NASDAQ:SBAC), with a steady stock price target of $276.00. The affirmation follows the company's fourth quarter results of 2023 and its guidance for 2024.
SBA Communications, a leading wireless communications infrastructure company, reported leasing activity and Adjusted Funds From Operations (AFFO) per share for the fourth quarter that exceeded analyst expectations.
Despite the positive performance in the last quarter, the company's outlook for leasing and AFFO per share in 2024 was slightly below expectations.
KeyBanc acknowledged the company's recent financial moves, including the refinancing of its term loan B (TL-B) and the procurement of a new interest rate swap to replace the existing one. These steps have addressed one of the concerns investors had about the company's financial strategy.
The analyst from KeyBanc noted that while SBA Communications has resolved one of the bearish concerns, two significant uncertainties remain. The first is regarding the timing of when the downward trend in leasing will reverse, and the second pertains to the company's plans for utilizing its cash reserves.
Despite these unresolved questions, KeyBanc expressed confidence in the eventual recovery of the U.S. leasing cycle, although the timing remains uncertain.
The report further highlighted SBA Communications' historical performance as a strong allocator of capital, and its track record of surpassing its own financial guidance. KeyBanc anticipates that the stock might experience a decline due to the current uncertainties; however, their long-term outlook remains positive based on the company's past achievements and strategic financial management.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.