American Tower: 5G Reacceleration, But Volatility Comes First (Rating Upgrade)
Summary
- American Tower's (AMT) stock price appreciated by nearly 24% since February, driven by improved financial performance and a more dovish-looking Fed.
- The India exit, involving a $2.5 billion asset sale, impacts AMT's global ranking and revenue but aids in deleveraging and improving FFO per share.
- Despite challenges in 5G investment globally, AMT expects U.S. market growth and has seen increased application activity, beating Q1 and Q2 expectations.
- Also, CoreSite acquisition positions AMT in AI, as it moves towards the edge.
- This remains a rate-sensitive stock, but it deserves better given it is improving the quality of earnings by exiting emerging markets and controlling leverage.
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Since I last covered American Tower Corporation (NYSE:AMT) in February in my piece entitled "Telco Spending Issue And Rate Sensitivity Risks" its price has appreciated by nearly 22% and was trading at around $236 at
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