CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our target by $3 to $212, using forward EV/EBITDA of 19.0x our 2024 EBITDA estimate, a discount to AMT’s 22.0x 10-year average due to lower capex spend from major telco’s and a more tempered pace of 5G expansion likely moving forward. We raise our 2023 AFFO estimate by $0.01 to $9.76 and keep 2024 at $10.44. AMT posted Q3 2023 AFFO of $2.58 vs. $2.45, a $0.19 consensus beat on revenues that rose 5.5% Y/Y. Revenue growth was supported by strong organic billings growth of 6.3% and operating profit margins that rose to 67.0% vs. 64.0% Y/Y. Within Towers, organic billings were strongest in Africa (+12.8% Y/Y), followed by Europe (+8.2%), APAC (+6.1%), U.S./Canada (+5.3%), and LATAM (+5.2%). Data Centers also continue to benefit from industry tailwinds, with monthly recurring revenue per Cab up to $1,718 vs. $1,586 Y/Y, revenue growth of 9.2%, and AMT on track to sign record new business in 2023. AMT decreased variable rate debt exposure by 400 bps Q/Q to 11% and lowered net leverage to 5.0x vs. 5.3x Q/Q.