AMT – Market expectations are for Uniform ROA to expand to new peaks, but management has concerns about planned Capex, international operations, and cash flow growth

• American Tower Corporation (REIT) (AMT:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 34.1x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about planned Capex, international operations, and cash flow growth
• Specifically, management may lack confidence in the sustainability of significant network spending in key markets like India, Mexico, and South Africa, and may have concerns about the potential of new assets acquired in international markets. Moreover, they might be concerned about their ability to maintain growth in adjusted EBITDA and AFFO, and might be exaggerating their optimism related to core U.S. business outlook. Lastly, they may be concerned about maintenance Capex reverting from low levels, and may lack confidence in their ability to sustain free cash flow CAGR.