2024-03-26 10:00:00 ET
Summary
- AMT offers an improved margin of safety after the recent pullback, as the market digests the lowered quarterly dividend payouts on a QoQ basis.
- However, we believe that the moderated AFFO payout ratio is prudent during an elevated interest rate environment, since it allows the management to deleverage its balance sheet.
- In addition, AMT has offered a promising FY2024 guidance, further demonstrating its ability to consistently generate profitable growth while sustaining its shareholder returns.
- Thanks to the immense synergy from its existing telecom business along with the ramping up of its Data Center capabilities, we believe that the stock is currently reasonably valued.
- As a result of the (prospective) dual-pronged returns through capital appreciation and dividend incomes, we are re-rating the AMT stock as a Buy here.
We previously discussed American Tower ( AMT ) in December 2023, discussing how the stock had rallied tremendously after the October 2023 bottom, as the October 2023 CPI implied a cooling inflation and an unlikely rate hike ahead....
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Buy American Tower's Recent Dip As The Management Delivers Sustainable Growth & Income (Rating Upgrade)