Zacks Investment Research downgraded shares of American Tower Corporation. (AMT) from NEUTRAL to UNDERPERFORM on December 05, 2013, with a target price of $70.00.
American Tower reported tepid third-quarter 2013 results with both the top and the bottom line missing the Zacks Consensus Estimate. Despite increased deployment of 3G/4G network by carriers across the world and aggressive buyouts of towers in emerging markets, the company is exposed to stiff competition and new technologies. Moreover, foreign exchange rate risk, less customer concentration, integration risk, rising operating expenses and a highly leveraged balance sheet may act as headwinds for the company going forward. Nevertheless, the stock is currently trading at a 52-week high range. We believe it is overvalued at current level and therefore downgraded American Tower to an Underperform recommendation.
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