UPDATE: Nomura Initiates SBA Communications at Buy on Domestic Growth

Nomura initiated coverage on SBA Communications

with a Buy rating and a $75 price target. Nomura commented, "We view SBA as the fastest domestic growth asset due to consistent tower portfolio expansion, supplemented by recent largescale acquisitions. SBA is growing its tower portfolio by 60% this year, setting the runway for significant future growth. SBA is the smallest of the tower companies but has made up for its size disadvantage with leverage, with a target leverage ratio of 7-7.5x EBITDA. While share buybacks have been less significant than peers, we expect a higher longterm growth rate due to the concentration on portfolio expansion." SBA Communications closed at $65.39 on Wednesday.