SBA Communications Reports a Very Good Q3 and Foreshadows Continued Strength in Tower Activity

SBA Communications reported an excellent third quarter that was generally solid in all aspects, and the firm raised its full-year outlook across all metrics. More encouraging, management didn’t give any indication that it anticipates a slowdown in 2023, as carriers’ spending plans and comments from other tower companies might imply. We’re not materially changing our 2023 forecast, as we think the stronger-than-anticipated close to 2022 is largely related to an earlier-than-expected closing of a big tower acquisition in Brazil and a delay in some churn the firm expects. We’re maintaining our $250 fair value estimate.