SBA Communications' (SBAC) domestic leasing activity is expected to decelerate in the second half of 2026, Morgan Stanley analysts said in a Tuesday note.
Analysts said that tailwinds for the company include upcoming spectrum auctions, the renting of base station space for artificial intelligence inference and edge computing, along with continued adoption of fixed wireless access and growth in broader mobile data traffic.
Morgan Stanley said that SBA is expected to face increasing churn levels due to consolidation, restructurings, and network rationalization, with the international business experiencing higher churn for longer.
Analysts said they expect the company to repurchase $400 million of shares in 2026 on a $1.1 billion remaining buyback authorization.
Morgan Stanley retained an equalweight rating on the stock, but lowered its price target to $215 from $225.
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