SBA Communications (SBAC) Stock Forecast & Price Target

SBA Communications owns approximately 45,000 wireless towers across North America, South America, and Africa, with a significant concentration in the U.S. where over 17,000 towers generate around 75% of its leasing revenue. As the company operates as a real estate investment trust, improvements in its cash flow trajectory and a strong balance sheet position it favorably as it approaches the second half of 2025 and first half of 2026, when AFFO multiples are expected to improve. Valuation metrics reflect a compelling investment opportunity, with the stock currently trading at around 17 times 2026 estimated AFFO.

SBA Communications faces significant challenges due to a concentrated customer base primarily reliant on a few major mobile carriers, which poses risks to revenue stability. Moreover, the company is encountering adverse conditions characterized by elevated interest rates, a slowdown in mobile broadband growth, and reduced carrier spending following aggressive 5G deployments and the merger between T-Mobile USA and Sprint. Additionally, competition from satellite broadband and a lack of new frequency allocations may further hinder the company's expansion prospects, leading to a cautious outlook on its financial performance.