Sprint/T-Mobile Would Mean Hit for Tower Companies, New Street Says

U.S. tower companies will lose 4-9 percent of their market capitalization if Sprint and T-Mobile combine (see 1709190048), New Street Research wrote investors Tuesday evening. Among the major players, Crown Castle faces the biggest “downside,” the firm said. “We have maintained for months that a Sprint/T-Mobile merger was the most likely transaction, with the most likely structure leaving [Deutsche Telekom] in control,” said analyst Jonathan Chaplin of New Street in a Wednesday note. “We upgraded Sprint to Buy back in January when this outcome started to come into focus.”