SBA Communications downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo analyst Eric Luebchow downgraded SBA Communications to Equal Weight from Overweight with a price target of $220, down from $230. Despite some interest rate cute enthusiasm, the company’s fundamentals will remain “relatively weak” near-term with no funds from operations inflection until 2027 and a lack of a discernible catalyst on the horizon, the analyst tells investors in a research note. The firm says recent conversations with management and private operators do not suggest a material near-term inflection in domestic leasing. The wave of densification is more likely in 2026 and beyond in SBA’s markets, contends Wells. It says the stock’s valuation is attractive but the company is without catalysts.