Against a rallying market today, major communications tower companies are off fractionally alongside a downgrade at UBS.
American Tower (NYSE:AMT) is down 0.2% and SBA Communications (NASDAQ:SBAC) is off 0.4% as the firm downgraded shares of each to Neutral on risk-reward factors after the stocks' recent moves: After a year-end dip, AMT is up 34.5% YTD, while SBAC is up 36.8% over that span.
Aside from valuation, though, UBS is "constructive" on tower fundamentals and expects both companies to capitalize on rising data usage and increased carrier activity.
It's raised its price target on American Tower to $222 from $195 (implying 4.7% upside) and on SBAC to $240 from $209 (8.8% upside).
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