SBA Communications Hires Advisers to Weigh Takeover Interest, Shares Jump 19%

Overview

• SBA confirmed it brought in financial advisers to review preliminary proposals from large infrastructure investment funds.
• Shares rose as much as 18.93% after the disclosure as traders weighed the chance of a premium bid.
• Several banks had cut targets in recent months, and the Street now pegs the stock at Hold with a $230.11 average target.
• The company beat EPS forecasts last quarter at $3.47 while revenue came in slightly below estimates at $719.58 million.
• SBA recently raised its dividend to $1.25 a quarter, and tower assets draw funds because long leases produce steady cash flows.