- Wireless towers still make up a solid investment, BTIG's Walt Piecyk says, with commentary on American Tower (NYSE:AMT), SBA Communications (SBAC -0.7%) and Crown Castle (CCI +0.3%).
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Low churn at American Tower (reiterated Buy rating; trimmed price target to $137, implying 28% upside) promises the fastest growth in domestic leasing revenue, he notes.
- Also at Buy is SBAC, growing fastest in gross tower leasing but facing about $50M in churn in the next three years from Metro, Leap and Clearwire. But SBAC doesn't face the same pressure from big sale-leaseback transactions as its peers. Bumping SBAC's price target to $145 implies a hefty 39.5% upside.
- Piecyk is Neutral on Crown Castle, though the company should see a lift in growth from fiber investments.
- Overall: “Stable growth in a high margin, low capital intensive business should still be attractive to investors, even in an uncertain interest rate environment,” he writes.