Towers Have Underperformed Thus Far  

Jonathan Schildkraut at Evercore ISI noted in their Telecom Newsletter that thus far in 2015, towers have relatively underperformed in the broader market. “That being said, we believe tower companies continue to execute well and remain in a favored position within the telecom services infrastructure world,” Schildkraut wrote. “In our view, tower stocks are generally driven by two factors: (1) trends (tower companies have historically been beat and raise stories), and (2) thematics (drivers that extend the high growth potion of the curve – highlighting our view that with tower players it is not how fast you can grow, but how long you can grow fast). In 1H15, trends have been slow – overshadowing the development of key thematics. As we go into 2H15 (and begin to consider 2016), we believe trends and thematics will positively align – leading to the return of strong secular stock performance and highlighting the summer of 2015 as an attractive time to build a position in the group.” View the entire Telecom Newsletter here.