NEW YORK (TheStreet) -- Shares of American Tower Corp (AMT) are lower by -0.69% to $98.10 in pre-market trade this morning after the company was downgraded to "equal weight" from "overweight" at Morgan Stanley (MS) , with a $98 price target.
The firm cited fair valuation and overhang related to the holding company's international expansion.
Separately, TheStreet Ratings team rates AMERICAN TOWER CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMERICAN TOWER CORP (AMT) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 27.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 132.00% and other important driving factors, this stock has surged by 42.97% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AMT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 134.8% when compared to the same quarter one year prior, rising from $99.82 million to $234.43 million.
- Net operating cash flow has significantly increased by 52.57% to $595.80 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.20%.
- AMERICAN TOWER CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMERICAN TOWER CORP reported lower earnings of $1.38 versus $1.60 in the prior year. This year, the market expects an improvement in earnings ($2.26 versus $1.38).
- You can view the full analysis from the report here: AMT Ratings Report
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