American Tower (AMT) International Expansion and Global Data Growth Drive AMT to Outperform - Cannacord Genuity
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Rating Summary:
26 Buy, 8 Hold, 0 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 20 | Down: 14 | New: 22
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Gregory Miller from Canaccord Genuity published a note reviewing American Tower (NYSE: AMT) quarter and describing the longer term vision of international expansion. Near term strong lease-up activity on recently acquired assets has helped offset slower activity from large customers(AT&T) but some of the upside was offset by FX.
American Tower increased its 2015 outlook for adj. EBITDA and AFFO, despite reducing revenue guidance due to FX, which otherwise masked solid core results and outlook. Strong leasing trends and recently completed acquisitions set 2016 up for and even stronger year for AMT operationally.
M&A is a key driver for AMT. Domestically Verizon towers acquisition closed at the end of 1Q15. Internationally, there are several recent acquisitions that will positively impact results: 1) a TIM Brazil tranche that closed in September 2) Bharti Airtel (Nigeria) July 1 and 3) the recently announced acquisition of a 51% controlling stake in Viom Networks Limited for a little under $1.2bn to be merged with AMT’s existing business in India.
US Setting the pace for the rest of the world. AMT believes that the rest of the world will follow a similar pattern to the US in terms of data consumption and by embarking on an aggressive acquisition plan, it will be able to monetize that growth.
Reiterated Buy rating, adjusted EPS for the timing of the acquisitions closing and FX but PT remains $110.
For an analyst ratings summary and ratings history on American Tower click here. For more ratings news on American Tower click here.
Shares of American Tower closed at $102.23 yesterday.
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