SBA Communications Corp (SBAC.O): Takeaways from SBA Earnings Call and Callback; Model Update

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SBA Communications Corp (SBAC.O): Takeaways from SBA Earnings Call and Callback; Model Update

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04 Aug 2026 03:29:19 ET │ 28 pages

SBA Communications Corp (SBAC.O)

Takeaways from SBA Earnings Call and Callback; Model Update

CITI'S TAKE

SBA reported generally in-line operating results with better financial

headlines. While guidance was modestly optimized, the core operating

target ranges remain unchanged. We believe SBA remains positioned to Buy

deliver on roughly 4% underlying organic domestic leasing growth excluding Price (03 Aug 26 16:00) US$179.54

Sprint and DISH churn, while International should trough this year and

Target price US$235.00begin to improve in future years. While 2H domestic leasing is still likely to

decelerate from 1H, we still see an opportunity for near flat activity in 2027 Expected share price return 30.9%

to the extent a la carte activity picks up (i.e. T-Mobile), while we believe the Expected dividend yield 3.0%

other two national carriers remain generally active. SBA also discussed the

Expected total return 33.8%opportunity to resume share repurchases in 2H26 and we believe SBA has

capacity to repurchase $300-400 million of shares representing roughly Market Cap US$19,043M

1.5-2.0% of the market cap. We maintain our Buy on SBAC as AFFOPS

should return to positive annual growth in 2027 and accelerate thereafter.

Takeaways — We have updated our model for the modest revisions in guidance, Price Performance

extended our outlook through 2035, and updated our expectations for interest cost (RIC: SBAC.O, BB: SBAC US)

for the updated pace of refinancings. Near-term dilution to AFFOPS is largely from

changes in interest expense timing, while the potential to repurchase shares at a