We reiterate our long-term Neutral recommendation
American Tower Corp.
), as we believe the stock is currently fairly valued. The
company reported strong financial results for the third quarter
of 2012 as earnings per share easily beat the Zacks Consensus
Estimate. The top line also witnessed significant upside due to
higher demand for wireless broadband data services coupled with
American Tower's global expansion strategy.
American Tower continues its strong performance driven by
substantial demand for tower space to facilitate high-speed
wireless data and on demand video services, along with super-fast
3G/4G technologies. Massive demand for wireless data and video
throughout the world will boost American Tower's long-term
growth. Nevertheless, the stock has soared nearly 32% in the last
year andis currently trading at the high-end of the 52-week price
range, which may restrictthe above market gain anytime soon.
Mobile subscribers' growth has significantly boosted the
wireless tower industry. Moreover, future financials are likely
to be propelled by strong demand for wireless voice, broadband
wireless data and video networks, which require more tower space.
Deployments of 3G mobile networks promulgate requirements to
expand coverage and infrastructure by carriers. Next-generation
4G LTE networks withthe increased usage of smartphones and
tablets will also create impressive demand for tower leasing.
Verizon Wireless started deploying LTE from the end of 2010.
Verizon Wireless is a joint venture between
Verizon Communications Inc.
Vodafone Group plc.
) started deploying LTE from mid-2011. Moreover, the Multi level
Agreement (MLA) for 9 years signed with
Sprint Nextel Corp.
) will further boost American Tower's top-line growth going
AMER TOWER CORP (AMT): Free Stock Analysis
SPRINT NEXTEL (S): Free Stock Analysis Report
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VODAFONE GP PLC (VOD): Free Stock Analysis
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