Anterix: Uniquely Positioned To Ride The Wave Of Energy Infrastructure Growth

Summary

• Anterix is leveraging its licensed 900 MHz spectrum to enable the deployment of private LTE broadband networks for utilities across the US.
• The company has already signed sale and lease agreements with seven utilities, for $390 million in contracted proceeds.
• The cash from these deals is received upfront compared to the revenue which is recognized ratably over the lease period, which is typically around 20 years.
• The pipeline of opportunities is currently valued at over $3 billion, with $1 billion in near term opportunities across 18 utilities.
• Despite its attractive valuation, given its risk profile, I am recommending ATEX stock a speculative Buy.

Trevor Williams

Investment thesis

Anterix (NASDAQ:ATEX) has a market cap of close to half a billion, but remains largely unknown among investors and has low analyst coverage. The company has a unique license asset in the 900 MHz spectrum. Its target customers are from

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.