Report
Valens Research

SBAC - Embedded Expectations Analysis - 2020 01 10

SBA Communications Corp. (SBAC:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 37.3x Uniform P/E, implying bullish expectations for the firm. However, management may have concerns about 4G and 5G demand, Brazilian macro risks, and their growth opportunities

Specifically, management may be exaggerating the ongoing demand for 4G densification and the potential of 5G deployment. Moreover, they may be concerned about pension reform and other macro risks in Brazil, and they may lack confidence in their ability to sustain growth in Brazilian same-tower organic sales and domestic same-tower leasing revenue. Furthermore, management may be exaggerating the in-building opportunities provided by CBRS licenses, and they appear concerned about Atlas tower development and merger opportunities
Underlying
SBA Communications Corp. Class A

SBA Communications is a holding company. Through its subsidiaries, the company is an owner and operator of wireless communications infrastructure, including tower structures, rooftops, and other structures that support antennas used for wireless communications. The company's operations are in the U.S. and its territories. In its site leasing business, the company leases antenna space to wireless service providers on towers that the company owns or operates and manages rooftop and tower sites for property owners under various contractual arrangements. In its site development business, the company assists wireless service providers in developing and maintaining their own wireless service networks.

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Valens Research
Valens Research

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