A look at three Feldman points shows what we can expect in the next few years if 5G networks spread across the country. First, he points to the obvious fact that in 2020 5G coverage will be expanded by the Big 4 mobile operators. Second, Apple will launch a 5G-enabled iPhone this year, which is expected to drive the introduction of the new technology over the next few years. Third, data usage will increase as more users switch to 5G devices, resulting in higher cell site density – it becomes a virtuous cycle.
Feldman’s last two points relate to what he sees as the bottom line for investors interested in 5G stocks: that cell tower owners and operators are the best stock position when the switch begins and expands. For his fourth point, he notes that auctions will open the medium band spectrum this year and next year and will push forward tower leases. Finally, in point five, Feldman sees the use of new antennas and the associated expansion of the use of the medium-band spectrum, which is driving the expansion of the towers and the future increase in tower loading and use.
Switching to 5G has the potential to turn the mobile phone markets upside down. The Big 4 have all initiated coverage in the new network, but so far only T-Mobile has launched it nationwide. AT&T, Sprint and Verizon are launching 5G coverage for the high band spectrum in limited, dense urban markets. And a group of REITs that specialize in tower properties are able to win regardless of how the chips fall out for the mobile operators.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In this article we will look at three Goldman stock recommendations Sachs 5G are all three high Smart Score from TipRanks System – Rating 9 or 10. The Smart Score collects and collects data on more than 6,500 stocks from the TipRanks database and merges them into a single number. A rating of 9 or 10 indicates that the stock is likely to outperform the broader markets in the coming months. “Data-reactid =” 15 “> This article presents three Goldman Sachs 5G stock recommendations, all three of which are high on TipRanks’ Smart Score system – rating 9 or 10. The Smart Score collects and collects data more than 6,500 stocks that come from the TipRanks database and summarized them into a single number indicates that the stock is likely to outperform the broader markets in the coming months.
<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "SBA Communications Corporation (SBAC)“data-reactid =” 16 “>SBA Communications Corporation (SBAC)
In the first place is SBA Communications, a real estate investment fund. REITs are companies that buy, own and operate various residential and commercial properties and derive their profits from rents and administrative fees. Cell tower properties are a common investment for REITs. As previously mentioned, this combination is Brett Feldman’s most popular 5G investment. SBA is exactly this type of REIT; It owns and operates a wireless infrastructure, including small cells, distributed antenna systems, and traditional cell sites.
The popularity of wireless systems, the need for technical infrastructure for modern life, and the move to 5G have brought SBA to an upward trend. The share gained 50% in 2019. The company has consistently exceeded expectations in the quarterly earnings reports.
The numbers show that as far as they can. In the last report for the third quarter of 2019, SBAC Funds from Operations (FFO – the REIT equivalent to earnings per share) was $ 2.15, up from the expected $ 2.08 and up 12% year over year. The sales were equally strong. Revenue was $ 507.55 million, 2% above the forecast and 8.6% above the previous year.
<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This strong stock performance was achieved Feldman full attention. He upgraded the SBAC to a buy rating and wrote, “We expect organic leasing growth to accelerate domestically as network operators expand their 5G coverage and begin to overlay the mid-band spectrum, and SBAC sees a significant decrease in M&A-driven churn , We estimate that SBAC will be able to buy back $ 7.1 billion of shares and repay dividends of $ 1.3 billion to shareholders over the next five years, while leverage will be 7.0 times net debt / EBITDA remains. “” Data-reactid = “20”> This strong equity performance Feldman’s full attention has been drawn to him: “We expect domestic organic leasing growth to accelerate as carriers expand their 5G coverage and begin to overlay the mid-band spectrum, and SBAC a significant one Churn on M&A Declines We estimate that SBAC will be able to buy back $ 7.1 billion of shares and repay dividends of $ 1.3 billion to shareholders over the next five years.
Feldman set a price target of $ 280 for SBAC, indicating growth of 12% over the next 12 months.
<p class = "Canvas-Atom-Canvas-Text MB (1.0em) MB (0) – SM MB (0.8em) – SM" type = "text" content = "SBA receives an average purchase rating from analyst consensus low ratings reflect the under-the-radar profile of most REITs in the markets, and these stocks, which are often fundamentally based, tend to be overlooked in favor of larger, more conspicuous stocks, SBAC stocks sell for $ 248 , and the average price target of $ 261.33 suggests a modest upside potential of 5%. (See SBA stock analysis at TipRanks) “data-reactid =” 22 “> SBA receives a moderate buy rating from the analyst consensus based on 2 purchases and 1 hold. The relatively small number of reviews reflects the” under the radar “profile of most REITs in the markets Stocks often rely heavily on fundamentals, they tend to be overlooked in favor of larger, more conspicuous companies, SBAC stocks sell for $ 248 and the average price target of $ 261.33 suggests a moderate upside potential of 5% (see SBA stock analysis at TipRanks))
<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "American Tower Corporation (AMT)“data-reactid =” 35 “>American Tower Corporation (AMT)
The second inventory on our list increases the size of the tower-oriented REIT model. American Tower is another owner / operator of wireless infrastructure – but this company has a $ 103 billion market cap and a global investment base. AMT has over 170,000 telecommunications infrastructure locations. The company’s portfolio includes over 75,000 locations in Asia, 40,000 in the United States and 37,000 in Latin America. A further 16,000 locations in Europe, Africa and the Middle East round off the AMT investments.
Full-year 2019 figures are not yet available, but the value of the tower-based REIT is indicated by AMT’s revenue of $ 7.44 billion in 2018. The latest quarterly balance sheet is from the third quarter and shows an FFO of $ 2, 2% above expectations, and sales of $ 1.95 billion, which is a 5% forecast. Both FFO and sales increased significantly compared to the previous year. In response, AMT saw a 49% increase in value last year.
Feldman writes about AMT: “We believe that AMT should be traded with a significant premium on the median of high quality REITs. We have also increased the terminal growth rate to reflect our assessment that the 5G cycle is likely to underpin leasing activity far beyond our 5 year forecast period. “
In line with his optimistic view of the company, Feldman gave AMT shares its second upgrade – to a buy rating. Its price target of $ 270 implies an upside potential of 15%.
<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Like SBAC, American Tower has a mediocre purchase rating. This is based on 6 Valuations, including 4 purchases and 2 holdings, the average price target of $ 243.83 indicates an upward trend of 4% compared to the current trading price of $ 233. (See American Tower stock analysis at TipRanks) “data-reactid =” 40 “> Like SBAC, American Tower has a moderate buy rating based on the analyst consensus, based on 6 reviews including 4 purchases and 2 holds. The average price target of $ 243.83 indicates an upward trend of 4% towards the current trading price of $ 233 (see American Tower stock analysis at TipRanks)
<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Verizon Communications (VZ)“data-reactid =” 49 “>Verizon Communications (VZ)
With Verizon, the third share on our list, we are shifting the path from the cellular infrastructure to a large cellular provider. Verizon is the second largest U.S. wireless company by customer base with over 118 million customers (as of September 2019). The company’s revenue of $ 130 billion in 2018 shows both the size and earnings potential of the U.S. mobile communications market.
Verizon has not seen the scale of growth seen in tower REITs, but growth in wireless services has boosted the company’s income statement. Sales in the third quarter of last year were $ 32.9 billion, half a percent above forecast, and earnings per share of $ 1.25 were 1% above estimates. In a key metric – net additions in retail – the reported 601,000 more than doubled compared to the previous year.
Solid quarterly results and a solid position in a growth market attracted Feldman to Verizon. In his comments on Verizon, he writes: “How much could 5G increase ARPU / ARPA? Our analysis of Verizon’s unlimited pricing shows that unlimited rate customer accounts generate monthly ARPA (average earnings per account) 11-48% higher than reported customer ARPA of $ 113.39 in the third quarter … [We see] A significant opportunity for sales growth for Verizon if the 5G upgrade cycle actually encourages more customers to upgrade to unlimited plans or migrate to higher unlimited levels. “
<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Feldman repeated his purchase evaluation for this share and increased his target price by 3% at USD 67. Its new price target implies an upward trend for the share of 7.6% in the next 12 months. Click here) “data-reactid =” 53 “> Feldman confirms his buy rating for this stock and increases his price target by 3% to USD 67. His new price target implies an upward trend for the share of 7.6% in the next 12 months To see Feldman’s track record Click here)
<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Like the two stocks above, Verizon is moderate Buy Consensus Rating: In the case of VZ, this rating is based on 4 buy and 6 hold ratings in the last 3 months, the shares are being sold for $ 59.04 and the average target price of $ 63.56 indicates one Upward trend of ~ 8%. (See Verizon’s stock analysis at TipRanks) “data-reactid =” 54 “> Like the two stocks above, Verizon has a moderate buy-consensus rating. In the case of VZ, this rating is based on 4 buy and 6 hold ratings over the past 3 months sells for $ 59.04 and the average target price of $ 63.56 indicates an upward trend of ~ 8% (see Verizon’s stock analysis at TipRanks).