Analyst Note| Matthew Dolgin, CFA |
SBA reported another good quarter and repeated what its tower peers said regarding the strength of U.S. tower leasing activity. However, also like peers, SBA hasn’t returned to the organic growth levels of 2-3 years ago and is trading at historically high valuation multiples. We expect SBA’s growth to remain strong, but we don’t expect it to eclipse organic growth rates from 2018-19 even when the recent leasing activity hits revenue next year. Nothing the firm reported in the quarter materially changes our outlook. We are maintaining our $200 fair value estimate and see the stock as materially overvalued.