Benchmark Capital Discusses Tower Companies (AMT, CCI, SBAC)

Benchmark Capital is out with a research report discussing the cell phone tower companies, American Tower Corporation AMT, Crown Castle International Corp. CCI, and SBA Communications Corporation SBAC. It has Buy ratings on all three companies, and its price targets are $55, $52 and $45 per share for American Tower, Crown Castle and SBA Communications, respectively. In the research note, Benchmark writes, "Tower infrastructure is relatively closed to new competition. A tower's real estate service is mission critical for wireless service providers in the United States and is largely protected from competition by local zoning restrictions. We believe the impressive operating leverage inherent in this industry provides an attractive investment driven by new demand for wireless infrastructure whether for wireless data or other wireless applications. Increasingly sophisticated devices, such as the iPad, should contribute to strong wireless data growth, which in turns fuels tower site demand." All three companies finished lower in Wednesday trading.