American Tower Corp. (AMT), a leading operator of wireless communications towers in the US and other emerging markets, declared third quarter 2008 financial results above our estimates. Overall performance has been driven by substantial demand for additional tower space to facilitate high-speed wireless data services and mobile video, along with emerging 3G technologies.
Rental & management revenue, adjusted EBITDA, and free cash flow financial metrics remain favorable. We believe the recent stock valuation weakness may be attributed to the leveraged balance sheet together with dismal general equity market conditions.
Our long-term view regarding the wireless tower industry remains positive. Management's outlook for fiscal 2009 is also encouraging. We maintain our Buy rating with a reduced valuation target in view of the perceived global economic slowdown.
Nalak Das contributed to the report.
Read the full analyst report on AMT
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