Analyst Note
| Matthew Dolgin, CFA |SBA Communications’ fourth-quarter sales and operating margins were consistent with our expectations and reflected what we’ve heard throughout most of 2020 from each of the U.S. tower companies. Revenue growth in the U.S. was solid but lower than previous years due to a slowdown in new activity, particularly due to T-Mobile’s initial integration of Sprint. SBA has several catalysts that should reaccelerate growth in 2021 and 2022, and we expect its business to perform well. However, despite our intention to increase our $190 fair value estimate by $5-$10 and the significant pullback in SBA’s stock, we still see the firm as overvalued and generally favor American Tower’s geographic diversification and more conservative financial strategy.