SBA Communications Stock Surpasses Analyst Target: What Comes Next?
In recent trading, shares of SBA Communications Corp (Symbol: SBAC) have surpassed the average analyst 12-month target price of $247.59, trading at $249.31 per share. When a stock reaches this target, analysts typically have two choices: they can either lower their valuation or adjust their target price upwards. The response often hinges on the company’s fundamental developments that may be driving the stock’s growth. If the outlook is positive, it might warrant a revised higher target price.
Within the Zacks coverage universe, there are 17 different analyst targets contributing to the average for SBA Communications Corp. However, averages can mask the diversity of opinions: while one analyst predicts a target as low as $202.00, another sees potential as high as $285.00. The standard deviation among these targets stands at $20.015.
The reason to examine the average price target is to harness the “wisdom of crowds,” incorporating the insights from various analysts instead of relying solely on one expert’s view. With SBAC’s price climbing beyond the average target of $247.59 per share, shareholders have a chance to reassess the company. They must consider whether this is merely a pause on the way to an even higher target or if the stock’s valuation has become too high, prompting a more cautious approach. Below is a table outlining the most recent ratings from analysts covering SBA Communications Corp:
| Recent SBAC Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 10 | 10 | 10 | 10 |
| Buy ratings: | 2 | 2 | 2 | 2 |
| Hold ratings: | 5 | 5 | 5 | 5 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.68 | 1.68 | 1.68 | 1.68 |
The average rating of 1.68 reflects a scale where 1 is Strong Buy and 5 is Strong Sell. This analysis utilized data from Zacks Investment Research via Quandl.com. For those interested, the latest Zacks research report on SBAC is available for free.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
