After a three year absence from spending on macro towers, Sprint is back with a new network plan. Spencer Kurn, analyst at New Street Research said, “We had already expected organic growth to accelerate next year as carriers deploy a multitude of fallow spectrum bands; we now expect Sprint to propel organic growth even higher.”
On top of this, Kurn said they have updated their Wireless Network Capacity Model in a companion report and believe VZ and TMUS may need to add ~60K more sites than they had assumed in their tower revenue forecasts. “The need for additional wireless capacity bodes well for rising tower estimates over the next several years,” Kurn said, “making the towers a great asset class to own. We are increasing estimates and raising our target for SBAC to $215 (+30%); AMT to $175 (+20%); and CCI to +$115 (+5%). SBAC is now our top pick,” he said.
November 30, 2017