KeyBanc analyst Brandon Nispel downgraded American Tower to Sector Weight from Overweight without a price target. The analyst sees a "tough" Q4 setup for the tower operators with outperformance in the U.S. and international leasing unlikely. In addition, funds from operations growth for the company is flat, and its valuation multiple is not screening inexpensive, the firm tells investors in a research note. The analyst says that while tower stocks could recover from 2022’s pullback if interest rates continue lower, it does not want to take that macro trade given a lack of industry catalysts. U.S. wireless capex is trending lower, international and fiber churn is high, and currency is a headwind, KeyBanc tells investors in a research note.
Published first on TheFly
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