AMT – Market expectations are for Uniform ROA to continue expanding to new peaks, but management has concerns about international markets, M&A targets, and guidance

• American Tower Corporation (AMT:USA)currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 32.4x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about their Indian and Latin American markets, acquisition targets, and EBITDA and billings guidance
• Specifically, management may have concerns about the diversification of their revenues in India, and may lack confidence in their ability to find more vendors and suppliers to run fiber to their LatAm towers. They may also be exaggerating their spending capacity for potential M&A targets, and may be concerned about their ability to sustain strong EBITDA margin. Also, they may lack confidence in their ability to maintain strong M&A activity to drive global billings growth, as well as their ability to sustain higher levels of business activity in LatAm. Finally, they may lack confidence in their assumption that the Indian network carriers will ramp up their spending in 4G, and may have concerns about their maintenance CapEx spend