We had a bearish take on American Tower on account of its towering valuation and poor growth prospects. The stock has lost 24% since our first Sell rating and reached our price target. We go over the big headwinds ahead and tell you how we would buy it.
American Tower Corporation offers a solid long-term outlook with a 3.6% dividend yield and trades at an undemanding valuation after recent share price declines. The company can grow through additional tenants, new infrastructure, and M&A, despite recent currency headwinds impacting EBITDA. Divesting its India business will free up cash for debt reduction, with a projected 7% pro forma FFO per share growth this year.
American Tower's recent price decline presents a compelling opportunity for income-focused investors, offering a 3.5% dividend yield and potential for market-beating total returns. AMT's robust global portfolio, including 224K communication sites and data centers, provides steady tenant billings growth and expanding opportunities in Europe. Strong financials, a solid balance sheet, and a prudent capital deployment strategy in developed markets underscore AMT's resilience and long-term growth potential.
If you're an investor looking to grow your long-term passive income prospects, the five stocks in this article could be perfect to add to your portfolio before 2025.
I'm excited to present my top 5 undervalued REITs for Christmas. VICI Properties, Realty Income, Alexandria Real Estate, American Tower, and Rexford Industrial are highlighted for their strong growth potential and attractive valuations. Each REIT offers significant upside potential by the end of 2025, with well-covered dividends and solid balance sheets.
Setbacks over the past year have hurt AMT's growth, though ample opportunities are there for reacceleration. Let's explore whether to add, retain or discard this stock now.
American Tower Corporation (NYSE:AMT ) UBS Global Media & Communications Conference December 10, 2024 12:45 PM ET Company Participants Rod Smith - EVP and CFO Conference Call Participants Batya Levi - UBS Batya Levi Great. Thanks, everyone, joining our next session with American Tower.
After the United States elected a new president, the thought of new policies, including tariffs and a view on immigration, spooked some investors out of the real estate sector. The reasons why stocks in the space pulled back recently can be attributed to both the potential cost increase from trade tariffs and the tightening supply of construction labor, which would further increase costs for homebuilders, especially.
VICI Properties is a top gaming and experiential REIT with strong growth, disciplined management, and a favorable valuation, making it an "easy" Buy with 20% return expectations. Crown Castle, a major communications infrastructure REIT, faces potential asset sales and dividend cuts, warranting a cautious approach despite its low valuation and 6.2% yield. American Tower offers a safer alternative with a solid earnings history, steady dividend growth, and strong data center business, projecting a 25% total return.
Finding stocks that have long-lasting megatrends working in their favor can be an excellent way to generate new investment ideas. This notion is especially true when the businesses are market share leaders in their niche.
Donald Trump's proposed policies could impact inflation and interest rates. They could also impact individual property sectors. We explain the impact on residential, industrial, cell tower, healthcare, and the cannabis property sectors.
AMT is likely to gain from the solid demand for wireless connectivity and capital allocation strategy despite customer concentration and consolidation.