Cellnex Q1 in Line; Bidding for Europe’s Crown Jewel Asset Has Begun; Company Is Well Positioned

Cellnex's first-quarter results came in as expected, with 6.5% organic growth in points-of-presence. Forty percent of this growth came from new build-to-suit towers, 20% from new colocations in existing towers and the remaining 40% from inflation tailwinds. Cellnex benefits from inflation due to its contracts and is hedged against energy price increases because it can pass on energy costs to tenants. We maintain our EUR 52 fair value estimate with shares offering 15% upside at this point.