SBA Earnings: Decent Results, but 2024 Outlook Takes Our Fair Value Estimate Down 4% to $250

SBA had a solid fourth quarter, but it said the US leasing environment remains weak amid a pullback in carrier spending. While this will further diminish near-term growth that is already facing headwinds from Sprint contract expirations, we’re encouraged by the subtle pivot we perceive in company strategy following the CEO transition on Jan. 1. We reduce our fair value estimate to $250 per share from $260 after adjusting our forecast, but qualitatively we’re now more comfortable with SBA than we had been in the past, when its strategy was to keep debt leverage very high in order to repurchase stock without regard to valuation.