logo
  Join        Login             Stock Quote

SBA Communications (SBAC) Upgraded To 'Top Pick' By RBC Capital, PT Raised

 December 04, 2012 02:30 PM
 


(By Balachander) SBA Communications Corp. (NASDAQ: SBAC) shares were upgraded to "Top Pick" from "Outperform" and price target raised to $85.00 from $71.00 by RBC Capital Markets.

The brokerage said tower operators are poised for 2013 acceleration as all four national carriers continue or start to ramp their 4G buildouts.

 "Further, as carriers such as Verizon (VZ) near completion of their 4G efforts, we are seeing an increase in new colocation applications driven by capacity requirements," RBC said.

[Related -T-Mobile US Inc (NYSE:TMUS): AT&T Inc.(NYSE:T) Could Suffer In Wireless War]

RBC is of the view that the tower business remains fundamentally decoupled from any macro pressures as wireless 4G is a competitive necessity for the major carriers.

"SBAC uniquely benefits amongst the national tower operators from the lack of a master-lease agreement with AT&T (T), which we believe provides for more upside to 2013 operating and financial performance as AT&T's 4G enhancements will directly drive SBAC site leasing revenue growth, compared to SBAC's national peers, which have contractual escalators with AT&T and have provided rent abatement for ~900 new AT&T collocations in their respective portfolios," RBC wrote.

SBA Communications owns and operates wireless communications towers in North America and Central America, and performs site development services for wireless carriers.

[Related -Apple Inc. (NASDAQ:AAPL): China Mobile On Board, But Challenges Remain]

The stock, which has been trading in the 52-week range of $39.38 to $69.63, advanced 0.84 percent to trade at $68.97 on Tuesday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageInitial Jobless Claims Rose Unexpectedly

Claims unexpectedly rose in the latest report through last weekend to breach 300,000 for the first time read on...

article imageAll Quiet on the Record High Front

What can we glean from the media’s lack of attention to the market’s recent record read on...

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.