Citadel on Tower Companies: Network-Sharing Announcement Could Be Positive Catalyst, But...
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Up: 8 | Down: 5 | New: 26
Rating Summary:
23 Buy, 14 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Citadel on Tower Companies: Network-Sharing Announcement Could Be Positive Catalyst, But...
Citadel analyst, Shing Yin, said, "Network-sharing announcement could be a positive catalyst for tower stocks - We believe Sprint (NYSE: S) is likely to disclose some details of its network-sharing plans within the next month, which could serve as a positive catalyst for the tower stocks. In our view, a network-sharing arrangement would likely allow Clearwire to resume its network build-out, and could also enable LightSquared and/or other parties to roll out their networks. Although a shared network would lead to less tower revenues than a standalone build, we believe investors largely no longer expect any of these parties to build a completely new network. As such, a network-sharing announcement would likely be incrementally positive to current expectations."
"We maintain our cautious view on the group longer-term We continue to be cautious toward the tower companies in the longer term. Because network sharing will start in the second half of this year (at the earliest), it will likely have little impact on 2011 results; meanwhile, the boost to 2012 revenues may not be enough to allow the tower companies to guide above current consensus. In the longer term, we believe upside from network sharing could be more than offset by downside from the pending shutdown of Sprint's ~20k iDEN cell sites, as well as AT&T's planned decommissioning of ~30k T-Mobile sites. We thus remain cautious on the group and would see near-term strength driven by network sharing expectations as an opportunity to reduce exposure."
Citadel maintains a Neutral rating on American Tower (NYSE: AMT) ($50 PT), Crown Castle (NYSE: CCI) (PT $38) and a Reduce on SBA Communications (Nasdaq: SBAC) (PT $34).
Citadel analyst, Shing Yin, said, "Network-sharing announcement could be a positive catalyst for tower stocks - We believe Sprint (NYSE: S) is likely to disclose some details of its network-sharing plans within the next month, which could serve as a positive catalyst for the tower stocks. In our view, a network-sharing arrangement would likely allow Clearwire to resume its network build-out, and could also enable LightSquared and/or other parties to roll out their networks. Although a shared network would lead to less tower revenues than a standalone build, we believe investors largely no longer expect any of these parties to build a completely new network. As such, a network-sharing announcement would likely be incrementally positive to current expectations."
"We maintain our cautious view on the group longer-term We continue to be cautious toward the tower companies in the longer term. Because network sharing will start in the second half of this year (at the earliest), it will likely have little impact on 2011 results; meanwhile, the boost to 2012 revenues may not be enough to allow the tower companies to guide above current consensus. In the longer term, we believe upside from network sharing could be more than offset by downside from the pending shutdown of Sprint's ~20k iDEN cell sites, as well as AT&T's planned decommissioning of ~30k T-Mobile sites. We thus remain cautious on the group and would see near-term strength driven by network sharing expectations as an opportunity to reduce exposure."
Citadel maintains a Neutral rating on American Tower (NYSE: AMT) ($50 PT), Crown Castle (NYSE: CCI) (PT $38) and a Reduce on SBA Communications (Nasdaq: SBAC) (PT $34).
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