American Tower: Will This Optimism Last? It Depends On The Feds' Speculative Pivot

Nov. 18, 2022 3:00 PM ETAmerican Tower Corporation (AMT)2 Comments
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Summary

  • We do not recommend that anyone chase AMT now, due to the massive 19.47% stock rally from recent rock-bottom levels since mid-October.
  • Though AMT seems fairly valued at current levels, its massive debt could put more downward pressure on its forward performance, depending on the Fed's December meeting.
  • Assuming a lasting pivot, AMT will sustainably recover, as with most stocks and REITs, significantly aided by its data center strategy.
  • Otherwise, we can expect more of a bloodbath ahead, due to the deceleration in its top- and bottom-line growth.

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American Tower (NYSE:NYSE:AMT) has moderately reduced its FY2022 AFFO guidance by $40M, mostly due to 4% headwinds from FX impact and Vodafone Idea Limited in India. The latter has triggered the company's lower international growth over the past few years, due to

AMT Revenue, AFFO ( in billion $ ) %, EBIT %, Dividends and Net Debt

S&P Capital IQ

AMT Projected Revenue, AFFO ( in billion $ ) %, EBIT %, Dividends and Net Debt

S&P Capital IQ

AMT 10Y EV/Revenue and P/E Valuations

S&P Capital IQ

AMT 5Y Stock Price

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This article was written by

Juxtaposed Ideas profile picture
5.13K Followers
I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.Prior to Seeking Alpha, I worked as a professionally trained architect in a private architecture practice, with a focus on public and healthcare projects. My qualifications include:- Qualified Person with the Board of Architects, Singapore.- Master's in Architecture from the National University of Singapore.- Bachelor in Arts from the National University of Singapore.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.

Disclosure: I/we have a beneficial long position in the shares of AMZN, MSFT, GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

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