SBA Earnings: Raising Fair Value 2% on Improving Carrier Activity and Tower Portfolio Acquisition

After a cyclical domestic slowdown weighed on results earlier this year, SBA’s third-quarter earnings highlighted improving domestic carrier activity, primarily in the form of colocations. Additionally, SBA continues to pursue growth opportunities, announcing an acquisition of 7,000 towers in Central America from Millicom for $975 million. We slightly increase our near-term forecast to account for management’s 2024 guidance raise on revenue and profitability, and with the addition of the Millicom deal, we raise our fair value estimate to $265 per share from $260.