UPDATE: Citigroup Upgrades SBA Communications to Buy on Cash Flow Growth

Citigroup raised its rating on SBA Communications

from Neutral to Buy and increased its price target from $62 to $74. Citigroup noted, "We are upgrading SBAC to a Buy rating with a revised target price of $74 partly based on: 1) favorable outlook for revenue and cash flow growth as our FY13 estimates are above current consensus for revenue by around 4% and for OIBDA by around 7%; 2) SBA is capturing a lower cost of interest than we initially anticipated that should be accretive to AFFO per share growth prospects; and 3) SBA is trading at an attractive discount with a P/AFFO multiple of 16.5 times our revised 2013 estimates of $3.86 per share vs. an average P/AFFO multiple for AMT and CCI of around 20 times." SBA Communications closed at $63.69 on Wednesday.