UPDATE: Citigroup Lowers PT on American Tower Following Solid Quarter Results

In a report published Thursday, Citigroup analyst Michael Rollins reiterated a Neutral rating on American Tower AMT, but lowered the price target from $91.00 to $80.00.

In the report, Citigroup noted, “American Tower reported another solid second quarter of results with organic revenue growth of around 9.5% yoy with better domestic performance and solid International growth. Although AMT's share price performance has underperformed its competitors recently, we find that AMT is trading at a premium P/AFFO multiple of 19.5x on our 2013 estimate and an in-line P/AFFO multiple of 16.7x on our 2014 estimate relative to its competitors. We continue to view AMT as a core holding within the Telecom sector given its solid revenue growth, upside potential from Int'l investments. We remain Neutral on AMT shares and could revisit our thesis at a lower share price or on the prospects of better cash flow growth. We reduced our target to $80 to partly reflect the recent increase in 10-year treasury rates.”

American Tower closed on Wednesday at $70.79.