BofA Securities raised its rating on SBA Communications (NASDAQ:SBAC) from Neutral to Buy “as green shoots emerge for carrier tower demand in 2H24” and refinancing rates turning out to be notably better than anticipated.
SBAC is currently trading at its lowest price in several years, which analysts believe reflects the market's anticipation of challenges expected in 2024 and 2025, such as lost revenue from Sprint and unfavorable rates.
Meanwhile, Jefferies analysts raised their price objectives for Digital Reality (DLR) and Equinix (NASDAQ:EQIX) (EUIX), citing strong demand, operating leverage, and the anticipation of lower interest rates in the future.
EQIX’s price target was hiked from $870 to $1,000, and DLR’s from $150 to $170.
Conversely, Cogent Communications (CCOI) has been downgraded to Neutral from Buy “as wavelength business revenue, and cost savings (network expense and SG&A) inflection points are taking longer to reach than we previously thought,” analysts at BofA Securities said in a Thursday note.