SBAC – Market expectations are for Uniform ROA to expand to record highs, but management may have concerns about demand, Brazil, and growth opportunities

• SBA Communications Corporation (SBAC:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 37.3x Uniform P/E, implying bullish expectations for the firm. However, management may have concerns about 4G and 5G demand, Brazilian macro risks, and their growth opportunities
• Specifically, management may be exaggerating the ongoing demand for 4G densification and the potential of 5G deployment. Moreover, they may be concerned about pension reform and other macro risks in Brazil, and they may lack confidence in their ability to sustain growth in Brazilian same-tower organic sales and domestic same-tower leasing revenue. Furthermore, management may be exaggerating the in-building opportunities provided by CBRS licenses, and they appear concerned about Atlas tower development and merger opportunities.