Inwit Earnings: Nice Opportunity to Buy High-Quality Name With 17% Upside; Solid Third Quarter

Inwit is well positioned to close a very strong 2023. In the third quarter, it reported organic revenue growth of 12.6% (12.8% last quarter) and 18.5% growth in EBITDAaL (16.7% last quarter). It expects to close the year in the low end of its revenue range but with EBITDA after leases and free cash flow above guidance. The tenancy ratio kept expanding and reached 2.21 tenants per tower compared with 2.20 times last quarter and 2.12 times one year ago. Going forward, we expect the tenancy ratio will keep growing, resulting in further operating leverage. We are maintaining our EUR 12.60 fair value estimate and believe this is a good opportunity for investors to invest in a defensive, high-quality name, with growing revenue, profits and dividends.