American Tower Corp. has completed its acquisition of InSite Wireless Group, LLC (InSite) for approximately $3.5 billion, including debt. The deal will be funded by a combination of cash and a revolving credit facility.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
American Tower’s (AMT) acquisition of InSite marks its entry into Canada and will grant the company control of approximately 3000 communications sites across the U.S. and Canada. The assets acquired from InSite are expected to generate property revenues of approximately $150 million and approximately $115 million in gross margin in 2021, the company said.
“As 5G densification initiatives in the U.S. accelerate and network deployments in international markets continue, we believe we are well positioned to generate attractive, sustainable long-term growth, including on these new sites, while playing a key role in enhancing mobile broadband connectivity,” said AMT CEO, Tom Bartlett. (See AMT stock analysis on TipRanks)
Deutsche Bank analyst Matthew Niknam this month downgraded American Tower from Buy to Hold, and lowered the stock’s price target from $295 to $245 (13% upside potential). Niknam believes that the company is still well positioned long-term but is facing a “tougher path” in 2021.
Consensus among analysts is a Strong Buy based on 6 Buys and 2 Holds. The average price target of $276.14 suggests upside potential of around 28% over the next 12 months.
Related News:
Norilsk Nickel Closes Oldest Production Facility To Cut Down On Emissions
Paychex’s 2Q Profit Beats Street Estimates; Top Analyst Lifts PT
Vale, BHP To Resume Iron Ore Operations At Samarco; Street Sees 12% Upside
