SBA Communications Expected To Showcase An Impressive Dividend CAGR Of 18% From 2022-2025, Analyst Says
Portfolio Pulse from Lekha Gupta
BMO Capital Markets analyst Ari Klein initiated coverage of SBA Communications Corp (NASDAQ:SBAC) with a Market Perform rating and a price target of $260. Klein is bullish on SBAC's position as a pure-play tower REIT and expects the company to see a sector-leading dividend CAGR of 18% from 2022-2025. However, he also notes that SBAC has the highest leverage among its peers and expresses concern about its a-la-carte leasing approach.
July 13, 2023 | 6:27 pm
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SBA Communications Corp is expected to see a sector-leading dividend CAGR of 18% from 2022-2025, according to BMO Capital Markets analyst Ari Klein. However, the company's high leverage and a-la-carte leasing approach could pose risks.
The analyst's bullish stance on SBAC's position as a pure-play tower REIT and the expected sector-leading dividend growth could be positive for the stock. However, the high leverage and concerns about the leasing approach could pose risks, potentially offsetting the positive impact.
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IMPORTANCE 80
RELEVANCE 100