NEW YORK-Analysts including Raymond James & Associates Inc. and Bear Stearns and Co. Inc. have re-initiated coverage of SpectraSite Inc. following the company’s re-listing on the New York Stock Exchange earlier this month.
Raymond James gave the stock a “strong buy” rating and a $41.50 year-end price target. Raymond James believes the company will report valuation free cash flow (defined as earnings before interest, taxes, depreciation and amortization minus capital expenditures, cash interest expense, accreted interest expense and taxes) in the second half of 2004, following the finalization of tower acquisitions from SBC.
Bear Stearns rated the company an “outperform” and gave it a year-end price target of $43. The company’s low net leverage, a concentration of towers in the largest U.S. markets and leading average same tower revenue growth during the past two years distinguishes SpectraSite from the other public tower companies, according to Bear Stearns. The analyst firm also said these characteristics make the company a potential merger or acquisition target for more highly leveraged tower companies.
Shares of SpectraSite were trading at $36.45 Tuesday afternoon.
