After American Tower announced they were entering into a deal with Verizon to acquire their tower portfolio the analysts went to work. Here’s what they have to say about the biggest deal so far this year:
VZ Towers Not the Kind of Deal We Like To See From AMT; Shift In Strategy Concerning; Downgrading To Neutral
Spencer Kurn and Jonathan Chaplin of New Street Research said, “We are downgrading AMT to Neutral on the heels of the VZ Tower transaction. We were cautious on the terms of the deal last night, and we didn’t learn anything on the conference call today that would change our view. In fact, the transaction appears modestly worse than we initially expected (the buyout after 28 years is larger than we expected and SG&A is higher than we expected) and we are lowering our target to $107.” Continue reading here.
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