Is American Tower Corp (AMT) a Smart Long-term Buy?

Qualivian Investment Partners recently released its Q3 2020 Investor Letter. In Q3 2020, the fund was up 9.3% and 9.1% on a gross and net basis versus the S&P’s 8.93% increase, outperforming by 0.3% and 0.2%. In October, we published an article revealing our exclusive interview with Qualivian Investment Partners’ co-founder Aamer Khan. You should check out Qualivian Investment Partners’ top 3 stock picks for investors to buy right now, which could be the biggest winners in 2021.

In the Q3 2020 Investor Letter, Qualivian Investment Partners highlighted a few stocks and American Tower Corp (NYSE:AMT) is one of them. American Tower Corp (NYSE:AMT) is a real estate investment trust and an owner and operator of wireless and broadcast communications infrastructure in several countries worldwide. Year-to-date, American Tower Corp (NYSE:AMT) stock gained 0.6% and on November 30th it had a closing price of $231.20. Here is what Qualivian Investment Partners said:

“American Tower: AMT was the only slightly negative contributor to the fund’s performance in the third quarter. However, when it reported Q3 results in October, AMT bested revenue, EBITDA, and AFFO estimates in the quarter, while seeing an improving revenue growth trajectory in its international business, which has been one of the key tenets of our investment thesis in AMT. As key international markets continue to mature and densify their networks, the company should see accelerating revenue, EBITDA and operating cash growth from its portfolio of international towers. The company offered limited color on 2021 expectations, but management did say it expects T-Mobile (TMUS) to drive higher U.S. activity y/y predominantly from its 2.5GHz overlay, and that the timing of its Sprint site decommissioning might be more back-end weighted. We will monitor how much of an impact the Sprint tower sites churn might impact US revenues in the 2022-2024 timeframe, however, we expect the underlying growth in wireless data at 30%+ per year, plus the improving contribution from AMT’s international portfolio of towers in key growth emerging markets, will allow the company to continue to put up low to mid-teens growth over our investment horizon.”


In Q2 2020, the number of bullish hedge fund positions on American Tower Corp (NYSE:AMT) stock increased by about 7% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in AMT’s growth potential. Our calculations showed that American Tower Corp (NYSE:AMT) isn’t ranked among the 30 most popular stocks among hedge funds.

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Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.