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UPDATE: ISI Group Upgrades American Tower on Healthy Internal Growth, FCF Generation

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In a report published Tuesday, ISI Group analyst Steve Sakwa upgraded American Tower (NYSE: AMT) from Neutral to Buy, and reiterated the $79.00 price target.

In the report, ISI Group noted, “We are upgrading American Tower (AMT) to Buy from Neutral as the stock has seen meaningful share price underperformance over the past three months (down 16% over that period which equates to 20% relative underperformance vs. the S&P and a 750bp underperformance vs. REITs) despite a Q2 earnings report and outlook for tower demand which was better than expected. For example, AMT's outlook for core growth of 8% for its domestic portfolio and 12% in its international portfolio is modestly above our assumptions at the start the year which assumed internal growth of 7.5% and 10.4%, respectively, so the revised outlook is better than expected. Going forward, we underwrite domestic SS NOI growth of ~7% per annum over the next 12 and 36 months, on average, while we underwrite NOI growth in the international portfolio of 10.4% over the next twelve months and ~11%, on average, over the next three years.”

American Tower closed on Monday at $69.66.

Latest Ratings for AMT

Oct 2015JP MorganMaintainsOverweight
Aug 2015Stifel NicolausAssumesBuy
Aug 2015Morgan StanleyUpgradesEqual-weightOverweight

View More Analyst Ratings for AMT
View the Latest Analyst Ratings

Posted-In: ISI Group Steve SakwaAnalyst Color Upgrades Analyst Ratings


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