BOCA RATON, FL – SBA Communications Corporation (NASDAQ:SBAC), a leading real estate investment trust, announced today the upcoming departure of Senior Vice President and Chief Accounting Officer Brian D. Lazarus, as well as the appointment of his successor, Saul Kredi.
Mr. Lazarus, who has been with SBA Communications for 18 years, will resign from his current roles effective December 31, 2024. His decision to retire caps a long tenure with the company, during which he played a significant role in its financial leadership.
Succeeding Mr. Lazarus, Saul Kredi will assume the position of Vice President and Chief Accounting Officer starting January 1, 2025. Mr. Kredi, 55, has a substantial background in accounting and finance, having joined SBA Communications in November 2014 as Corporate Controller.
He was promoted to Vice President, Corporate Controller in February 2024. His prior experience includes leadership roles at ACS Infrastructure Development, Inc., American Media, Inc., and The Hackett Group (NASDAQ:HCKT), Inc., as well as seven years at the global accounting firm Deloitte.
The company disclosed that there is no arrangement or understanding between Mr. Kredi and any other persons concerning his appointment, and he has no familial relationship with any of the company's directors or executive officers. Furthermore, Mr. Kredi is not involved in any transaction that would require disclosure under SEC regulations.
This executive transition comes as part of a routine corporate update filed with the Securities and Exchange Commission. The announcement ensures a planned and smooth transition of responsibilities within SBA Communications' financial leadership team.
Investors and stakeholders can find further details in the company's most recent 8-K filing, which outlines these changes and affirms the company's commitment to strong corporate governance and continuity in its executive roles. The information provided here is based on this SEC filing.
In other recent news, SBA Communications has been a focal point for analysts, with several firms adjusting their outlooks and price targets for the company. RBC Capital reduced its price target from $250 to $235 while maintaining an "Outperform" rating.
Similarly, Deutsche Bank cut its price target from $245 to $230 but kept a "Buy" rating. TD Cowen also revised its price target down to $253 from $266, continuing to rate the stock as a "Buy". Lastly, KeyBanc Capital Markets lowered its price target from $276 to $227, but still holds an "Overweight" rating on the stock.
Analysts have expressed a cautious outlook due to weaker trends in the U.S. and foreign exchange headwinds, impacting SBA Communications' financial performance and growth expectations. However, the company's Adjusted Funds From Operations (AFFOps) have been consistent with forecasts, indicating a solid financial base. The company is also expected to achieve an organic site rental growth of 2.3% with leasing revenue of $42.9 million for the full year 2024.
These recent developments highlight the challenges and opportunities facing SBA Communications. Despite the downward revisions in growth expectations, analysts maintain a positive long-term outlook, signaling confidence in the company's long-term prospects. The company's valuation has been highlighted as compelling, suggesting potential for growth in the infrastructure sector.
InvestingPro Insights
In light of the executive transition at SBA Communications Corporation, investors may find additional context in the company's financial metrics and market performance. According to InvestingPro data, SBA Communications holds a market capitalization of 20.97 billion USD, with a notable gross profit margin of 77.38% for the last twelve months as of Q1 2024. This high margin underscores the company's efficiency in managing its costs relative to its revenue.
InvestingPro Tips suggest that SBA Communications is a prominent player in the Specialized REITs industry and has been successful in raising its dividend for 5 consecutive years. Moreover, analysts predict that the company will remain profitable this year, as it has been over the last twelve months.
These factors, combined with a P/E ratio of 37.92 and an adjusted P/E ratio of 29.44, point towards a company with a strong earnings profile, despite a slight decrease in quarterly revenue growth of -2.61%.
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