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American Tower: Beware Storm Clouds On The Horizon
Summary
- AMT's international expansion strategy has begun to pay off, with strong growth across Europe, Africa and Latin America offsetting slowdowns in the Asia-Pacific and US & Canada.
- The strategy of horizontal expansion in foreign markets should provide reliable growth for years to come.
- But the company likely overpaid in its $10.1 billion acquisition of CoreSite. Aggressive expansion into additional verticals could jeopardize their domestic market dominance.
- Management must also address declining financial and operating metrics, which are deteriorating relative to peers.
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