AMT - American Tower Isn't Dead As The Tide Is Potentially Turning
2024-06-06 11:40:00 ET
Summary
- American Tower stock has demonstrated remarkable resilience recently.
- The leading communications REIT could return to growth as interest rates have likely peaked.
- AMT's upgraded guidance has improved buying sentiments, suggesting the worst is likely over.
- A buying opportunity remains attractive, with AMT still valued below its long-term average.
- I argue why AMT investors shouldn't miss adding exposure as the tide is potentially turning.
American Tower Stock Remains Resilient
Investors in multi-tenant communications operator American Tower Corporation ( AMT ) have done reasonably well over the past few months, even though AMT suffered a sharp selloff in April 2024. However, AMT's subsequent recovery has been robust, helping AMT stock's performance to align with the market since my previous bullish AMT update in March 2024. I argued that the selloff in AMT attributed to its dividend cut shouldn't alarm investors. The company's prudent approach in a higher-cost environment makes sense, as American Tower seeks to return to its targeted leverage ratio. As a result, AMT management must assure investors that AMT's dividend payout remains relatively secure to keep income investors onside....
American Tower Isn't Dead As The Tide Is Potentially Turning