Tower companies likely enjoyed solid—if not spectacular—Q2
July 24, 2017
The tower market likely enjoyed a modestly successful second quarter, multiple analysts wrote Friday morning, as wireless network operators gradually stepped up their network investments.
And this bodes well for the entire segment as it prepares to enter the 5G era and as carriers begin to put new airwaves to use.
“We remain positive on tower stocks coming into the 2Q print as we believe carrier spending has been broadly stable-to-improving (against a weak backdrop), while plans are being laid for the extended build cycle set to start in earnest in 2018,” Guggenheim’s Robert Gutman wrote in a note to investors ahead of second-quarter earnings reports. “We expect 2Q reports to show 1) steady amendment activity driven by increasing capacity needs and 2) increasing activity by T-Mobile, steady activity by Verizon, and the expectation of increasing spending by AT&T in 2H17 and Sprint potentially in 2018.”