SBA Communications: The Turnaround Setup Is Getting More Interesting

SBA Communications remains a Buy after a major refinancing, trading at a discount that offers a solid margin of safety. SBAC's refinancing secured $3.5 billion in investment-grade bonds at a 5.113% blended rate, improving its debt profile and flexibility.

Guidance for 2026 AFFO per share was raised to $11.95–$12.40, with churn expected to decline sharply post-2027, supporting long-term recovery. Despite near-term macro and rate headwinds, the company's strategic position, dividend growth, and future buybacks underpin a favorable risk-reward.

Back when I last covered SBA Communications (SBAC), I reiterated its Buy rating, highlighting how the valuation seemed to already reflect the pressure coming from headwinds such as churn or the then-upcoming refinancing.