AMT – Market expectations are for improving Uniform ROA, but management concerns about driving revenue growth and customer’s costs highlight operational concerns

• American Tower Corporation (AMT:USA) currently trades near historical averages relative to UAFRS-based (Uniform) Earnings, with a 32.0x Uniform P/E. At these levels, the market has fairly bullish expectations for the firm, expecting continued steady expansion in returns. However, management has concerns about their operational outlook
• Specifically, while management is confident about the opportunity for higher returns in overseas markets as a result of owning fiber assets, and the opportunity for European expansion at the right asset price level, they appear to have concerns about their ability to grow rental revenue and their asset base, as well as the cost structure of their customers, and about the potential for international growth in areas such as India