SBA Communications Corp. Retains Buy Rating (SBAC)

SBA Communications Corp. SBAC is well-positioned to benefit from sustained demand for tower infrastructure. The company is also levered to positive trends in wireless data and tablets. According to a report released by Benchmark, domestic M&A opportunities are also easing for SBA Communications (SBAC) as American Tower AMT has become more aggressive. The company is also approaching international M&A carefully. SBA stock is currently trading at 18x 2010E recurring FCF (excludes discretionary capex) or 21x 2010E FCF including all capex. With both metrics, the stock is currently trading at attractive levels. Benchmark has given a ‘Buy’ rating to the stock with a price target of $40.