AMT - Embedded Expectations Analysis - 2021 07 08
American Tower Corporation (REIT) (AMT:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with a 41.9x Uniform P/E, implying bullish expectations for the firm. However, management may be concerned about tenant billings growth, the potential of their macro towers, and their Telxius acquisition.Specifically, management may lack confidence in their ability to efficiently execute capital deployment plans, drive annual U.S. and Canada organic tenant billings growth, and secure more partnerships and growth opportunities, particularly in international markets. Moreover, they may be exaggerating the growth potential and favorable tailwinds of their macro towers and the need for carriers to add more equipment to existing lease sites. Furthermore, management may lack confidence in their ability to extend existing lease agreements, sustain double-digit AFFO per share growth, and further expand their fiber footprint. They may also have concerns about their aggressive tower building plans in India and Africa, as well as the potential of their Telxius acquisition and newly acquired C-band frequencies.
American Tower is a holding company. Through its subsidiaries, the company is a real estate investment trusts and an independent owner, operator and developer of multitenant communications real estate. The company's primary business is the leasing of space on communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a number of other industries. The company also provides tower-related services, including site acquisition, zoning and permitting and structural analysis, which primarily support the company's site leasing business, including the addition of new tenants and equipment on its sites.
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