Wells Fargo Defends American Tower (AMT)
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Price: $174.18 +1.09%
Rating Summary:
26 Buy, 9 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
26 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
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Wells Fargo defended American Tower (NYSE: AMT) on Wednesday after Muddy Waters criticized the company, recommending investors sell the stock.
"First, we strongly disagree with the report's contention that the tower business is under major technological threat from wifi and/or small cells or other solutions. Every carrier we speak with has stated that data growth is so strong that carriers need every possible solution to deal with traffic growth. We expect cell splitting (good for towers), additional antennas and spectrum deployed (good for towers), and every other solution like smallcell, DAS, wifi-offload to be used to deal with traffic growth. This will benefit the towers and the small-cell providers and is not a concern, in our view," said analyst Jennifer M. Fritzsche.
"The second point of disagreement is on the REIT status. We investigated this issue recently when questions were raised after the IRS delayed the REIT process for a company outside of our universe. What we learned when we investigated this issue was that towers are one of the original assets that were designated as REITable and that tower companies have been REITs for several years already (privately held Global Tower Partners has been a REIT since 2005)," added the analyst.
Wells Fargo has an Outperform rating on American Tower.
For an analyst ratings summary and ratings history on American Tower (NYSE: AMT) click here. For more ratings news on American Tower click here.
Shares of American Tower closed at $74.71 yesterday.
"First, we strongly disagree with the report's contention that the tower business is under major technological threat from wifi and/or small cells or other solutions. Every carrier we speak with has stated that data growth is so strong that carriers need every possible solution to deal with traffic growth. We expect cell splitting (good for towers), additional antennas and spectrum deployed (good for towers), and every other solution like smallcell, DAS, wifi-offload to be used to deal with traffic growth. This will benefit the towers and the small-cell providers and is not a concern, in our view," said analyst Jennifer M. Fritzsche.
"The second point of disagreement is on the REIT status. We investigated this issue recently when questions were raised after the IRS delayed the REIT process for a company outside of our universe. What we learned when we investigated this issue was that towers are one of the original assets that were designated as REITable and that tower companies have been REITs for several years already (privately held Global Tower Partners has been a REIT since 2005)," added the analyst.
Wells Fargo has an Outperform rating on American Tower.
For an analyst ratings summary and ratings history on American Tower (NYSE: AMT) click here. For more ratings news on American Tower click here.
Shares of American Tower closed at $74.71 yesterday.
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