Canaccord Genuity Reiterates Positive Stance on SBA Comm (SBAC) after T-Mobile USA MLA Signed

Canaccord Genuity reiterated its Buy rating and $71 price target on SBA Communications (NASDAQ: SBAC) after the much-anticipated Master Lease Agreement that it has signed with T-Mobile USA.

"Similar to the one that the carrier signed with Crown Castle, this agreement effectively eliminates one of the most significant merger synergies that would have been achieved between T-Mobile USA and Sprint, in our opinion," analyst Greg Miller comments. " We also believe that the MLA eliminates one overhang faced by SBAC and other tower operators, and therefore represents an incremental positive for this sector"

The firm estimates that this MLA adds $15-20mm in site rental revenue and $4-5mm in adjusted EBITDA and AFFO to their 2013 estimates.

They expected an announcement from American Tower (NYSE: AMT) on a MLA with T-Mobile USA next. Going beyond, they firm continues to believe, "AMT is best positioned to acquire the T-Mobile USA tower portfolio and has likely been working on the transaction, along with the MLA with the carrier."

For an analyst ratings summary and ratings history on SBA Communications click here. For more ratings news on SBA Communications click here.

Shares of SBA Communications closed at $59.92 yesterday.

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