Bear Stearns Upgrades SBA Communications
Bear Stearns upgrades SBA Communications (SBAC ) and Crown Castle (CCI ) to outperform from peer perform.
Analyst Jim Ballan says, along with upgrading SBA Communications and Crown Castle, he's introducing year-end 2006 price targets for tower stocks that he covers. He sees $18 for SBA, $19 for Crown Castle, and $30 for American Tower Corp.
He bases these targets on discounted-cash-flow analyses, forward free cash flow, and EBITDA multiples. He also ups his $73 year-end 2005 target for SpectraSite Inc. to $82. He thinks tower companies could raise guidance when they post second-quarter results.
Ballan believes carriers will report that network capital spending on plan and dispelling concerns over network build-outs that are expected to be backend-loaded in 2005.
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