American Tower (AMT), the real estate investment trust that leases space on communications sites and towers is now the biggest REIT in the world with 150,000 sites in its portfolio.
Its stock price has risen 43% over the past year and now has a yield of just 1.9% - but with the rapid growth in the number of connected devices it doesn’t look like either the business growth or stock price and going to end any time soon. Orbis Research forecast demand for data will increase by 21% CAGR until 2021.
The demand will be driven primarily by;
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tower companies look set to benefit as networks compete to be first to deliver a 5G network
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the collapse of the Sprint/T-Mobile merger means Sprint will need to invest in its network. Sprint, which was already being placed last in network quality rankings, has said it will will up its network capex in a big way with reports that it will triple its spend to $5 billion
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this month AT&T announced that all 50 U.S. states had decided to opt into FirstNet, a Federal government-backed communications network that will be built and operated by AT&T to provide connectivity for first responders across the country
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Internationally, American Towers revenues are growing by double digits in every region. Don’t be fooled by the name, over 70% of AMTs towers and 45% of revenues are generated internationally with a strong focus on India and Brazil.
The stock has seen some great gains recently but with huge prospects, domestic and international, and with AMT's clever targeting of growth markets and fast growing multinational wireless companies -- the outlook for long term growth and for AMT's stock price look bright.
This post is not a recommendation to buy or sell any security or derivative. Stocks are not suitable for all investors. Please do your own research.
Submitted January 31, 2018 at 04:53PM by InterestingNews1 http://ift.tt/2EtkVWg
