By Peet Serfontein & Khumbulani Kunene
American Tower Corporation is a real estate investment trust (REIT) that owns, operates, and develops wireless communications infrastructure. AMT's business model revolves around leasing space on its towers to wireless carriers, broadcasters, and other communications companies, providing stable, recurring revenue. The company is at the forefront of enabling 5G technology deployment, benefitting from the increasing demand for mobile data and network expansion.
Headquartered in Boston, Massachusetts, the company owns a vast portfolio of wireless and broadcast communication sites, including over 225 000 towers globally, with a significant concentration in the US.
Technically, a price in a developing declining channel pattern, supports a promising investment opportunity (see the black downward sloping parallel trendlines on the main chart). A price that trades towards the upper range of the channel can be regarded as bullish, because when the price reaches the upper boundary of a declining channel, it suggests that buyers are actively challenging resistance levels (see the dotted trendline).
A price in the Accumulation phase of the Wyckoff Price Cycle supports a bullish case. The accumulation phase reflects the actions of informed investors or institutions accumulating shares at relatively low prices in preparation for a potential upward move.
| Share Information | |
|---|---|
| Share Code | AMT US |
| Industry | Equity Real Estate Investment |
| Market Capital (USD) | 97.4 billion |
| One Year Total Return | 6.99% |
| Return Year-to-Date | -1.06% |
| Current Price (USD) | 208.43 |
| 52 Week High (USD) | 243.56 |
| 52 Week Low (USD) | 170.46 |
| Financial Year End | December |
| The share price has fallen year-to-date, but technical indicators support a potential near-term recovery. | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY23 | FY24E | FY25E | FY26E | |
| Headline Earnings per Share (USD) | 3.18 | 6.15 | 6.63 | 7.17 |
| Growth (%) | 93.40 | 7.77 | 8.10 | |
| Dividend Per Share (USD) | 6.45 | 6.51 | 6.85 | 7.28 |
| Growth (%) | 0.88 | 5.27 | 6.26 | |
| Forward PE (times) | 31.66 | 29.99 | 29.09 | |
| Forward Dividend Yield (%) | 3.12 | 3.29 | 3.49 | |
| A steadily rising dividend yield is anticipated over the forecast horizon. | ||||
Buy/Sell Rationale:
Technical Analysis:
Long term fundamental view:
| Share Name and Position | DELL US - Buy (Continue to hold) |
KMX US - Buy (Continue to hold) |
ALGN US - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 123.78 | 76.44 | 228.21 |
| Current | 141.74 | 85.09 | 227.93 |
| Movement | +14.5% | +11.3% | -0.1% |
|
A price in wave 5 of the Elliott wave price remains of interest. Remains above its 200-day SMA. Upside momentum is supportive.
Our profit target remains $148.00 with a trailing stop-loss at $135.50. Exit the trade by 10 January 2025. |
A developing ascending triangle pattern remains of interest. Remains above its 200-day simple moving average. Upside price momentum is supportive.
Our profit target remains at $90.00 with a trailing stop-loss at $80.00. Exit the trade by 31 January 2025. |
A price action in a developing falling wedge pattern remains of interest. Remains below its 200-day SMA. Muted upside price momentum is supportive.
Our profit target remains at $275.00 with a trailing stop-loss at $209.00. Exit the trade by 21 March 2025. |
| Share Name and Position | PG US - Buy (Continue to hold) |
YUM US - Buy (Continue to hold) |
CDE US - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 170.76 | 133.97 | 6.23 |
| Current | 179.31 | 138.63 | 6.38 |
| Movement | +5.0% | +3.5% | +2.4% |
|
An improving technical analysis score remains of interest. Remains above its 200-day SMA. The start of upside price momentum is supportive.
Our profit target remains at $185.00 with a trailing stop-loss at $174.00. Exit the trade by 19 February 2025. |
A period of low volatility in remains of interest. Crossed above its 200-day simple moving average. The start of upside price momentum is supportive.
Our profit target remains at $148.00 with a trailing stop-loss at $132.50. Exit the trade by 29 January 2025. |
A developing falling wedge pattern remains of interest. Remains above its 200-day simple moving average. Downside price momentum is a concern.
Our profit target remains $8.00 with a trailing stop-loss at $5.50. Exit the trade by 10 January 2025. |
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