SBA Earnings: Improving US Carrier Activity Offset by Increased International Churn

SBA’s fourth-quarter results pointed to improving carrier activity after a lull in spending, particularly in the US, which accounts for over two-thirds of total revenue. However, churn remains elevated in both the US and internationally. Sprint-related churn has been expected in the US, but elevated churn in Brazil exceeded our expectations. We’ve maintained our $265 fair value estimate for SBA as an increased near-term churn expectation was offset by the time value of money.