American Tower Corporation (NYSE: AMT) is well-poised to benefit from increased investments by wireless carriers in 4G and 5G networks, according to a recent assessment from Zacks Equity Research. Additionally, Zacks said, its strategic acquisitions and “decent” capital-allocation strategy “augur well despite customer concentration woes and a high-interest-rate environment.”
“American Tower’s extensive and geographically diversified communication real estate portfolio,” Zacks reported, “is set to benefit from the high capital spending by wireless carriers amid the incremental demand from global 4G and 5G deployment efforts, growing wireless penetration and spectrum auctions. With its vast portfolio of nearly 226,000 communication sites, the company is well-positioned to capitalize on this incremental demand.”
The analysis credits the company’s healthy track record and strong growth in key financial metrics on “robust demand” for its global macro tower-oriented asset base.
Zacks noted in the six months ending June 30, 2023, revenues from the property segment and adjusted EBITDA increased 4.4 percent and 6.6 percent on a year-over-year basis, respectively. Revenues from the property segment and Adjusted EBITDA grew at CAGRs of around 14 percent between 2012 and 2022.
“AMT continues focusing on macro-tower investment opportunities and gaining scale in attractive global markets. It has built more than 45,000 international sites since it began expanding internationally,” the Zacks report stated. “Around 8,000 of these sites have been built in Africa as carriers continue to invest in their network coverage and densification needs. Further, in the six months ended June 30, 2023, it purchased 68 communications sites, as well as other communications infrastructure assets, in the United States, Canada, France, Poland and Spain.”
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