Update shared on16 Sep 2025
Fair value Decreased 0.71%Analysts modestly lowered SBA Communications’ price target reflecting sector headwinds from EchoStar’s spectrum sale and anticipated slower global expansion, but remain positive on the stock’s limited near-term risk exposure and improved 2025 guidance, resulting in a revised fair value of $254.47.
Analyst Commentary
- Bullish analysts view the recent contraction in tower stocks as an overreaction, seeing current SBA share levels as an opportunity to buy at a discount to historical valuations.
- Some analysts stress that there should be no direct impact on SBA from the EchoStar situation until at least 2036, minimizing short-term risk from industry shifts.
- The sale of EchoStar’s spectrum and related network decommissioning is considered a sector negative, introducing a new churn headwind for tower companies, but timelines for impact on SBA are expected to be extended due to smaller overall exposure (~2% of global revenues).
- Bullish analysts highlight SBA’s solid Q2 performance and a meaningful increase in 2025 guidance as positive catalysts for the stock.
- A moderation in global expansion by U.S. tower companies may slow growth, but is expected to reduce drag on AFFO per share growth, supporting a more favorable financial outlook for SBA.
What's in the News
- Completed repurchase of 214,775 shares (0.2% of shares outstanding) for $49.2 million.
- Updated 2025 full-year guidance with revenues expected between $2,780 million and $2,825 million; net income between $865.5 million ($8.02 per share) and $910.5 million ($8.44 per share), representing a $64 million revenue increase from prior midpoint.
- Added to Russell 1000 Value-Defensive Index.
- Added to Russell 1000 Defensive Index.
- Chosen by Wyld Oaks to provide fiber connectivity infrastructure for a 215-acre master-planned development, enabling advanced connectivity features and future-ready networks.
Valuation Changes
Summary of Valuation Changes for SBA Communications
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $256.29 to $254.47.
- The Future P/E for SBA Communications remained effectively unchanged, moving only marginally from 33.78x to 33.54x.
- The Discount Rate for SBA Communications remained effectively unchanged, moving only marginally from 8.09% to 8.05%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.