American Tower Stands Tall

Highlights include American Tower Corp. (AMT - Analyst Report), Crown Castle International Corp. (CCI - Analyst Report), SBA Communications Corp. (SBAC - Snapshot Report) and Equinix Inc. (EQIX - Analyst Report).

Expansion initiatives and associated business prospects at American Tower Corp. (AMT - Analyst Report), a leading operator of wireless communications towers in the US and emerging markets, have led management to maintain growth projections for 2009.

Overall performance has been driven by substantial demand for tower space to facilitate high-speed wireless data services and mobile video, along with emerging 3G technologies. Rental & management revenue, adjusted EBITDA, and free cash flow financial metrics remain favorable. The company's new venture in the India is considered a significant catalyst moving forward.

Our long-term view regarding the wireless tower industry remains positive. Deployment of high-speed 3G network demands improved network coverage, which in turn generates the need for tower infrastructure companies to expand and more effectively service their clients.

American Tower currently holds the second largest position in this market. The company's primary competitors include Crown Castle International (CCI - Analyst Report), SBA Communications (SBAC - Snapshot Report) and Equinix Inc. (EQIX - Analyst Report).

We believe that the company's success will continue to be determined by site availability, pricing, and technological upgrades in wireless equipment and systems.We view the recent stock valuation to be attributed to the leveraged balance sheet together with weak general equity market conditions. We maintain our Buy rating with a $40 valuation target.