Benchmark Raises PT on SBA Communications to $50 (SBAC)

Benchmark is out with its report today on SBA Communications SBAC, raising its price target from $46 to $50. In a note to clients, Benchmark writes, "SBA is likely to grow adjusted funds from operations and free cash flow about 15%-20% per year for the foreseeable future. SBA currently has the most leverage to a strong domestic wireless market of the three public tower companies. In addition, SBA's revenue growth is typically slightly faster than peers. SBA has relatively high net debt at about 6.4x 2011E EBITDA, but its 2011 interest coverage should reach over 2.5x. We believe SBA has a strong management team that has positioned it well in the tower sector. Our price target is $50 per share. Our rating remains Buy." Shares of SBAC closed Friday at $43.46, down 0.46% from Thursday's close.