Thursday, July 5, 2012

Deutsche Bank Likes Tower Companies On Pullback

Shares of the three major cell tower providers — American Tower (AMT), Crown Castle (CCI) and SBA Communications (SBAC) — are trailing the S&P 500 this year. In a note today, Deutsche Bank analyst Brett Feldman writes that the three companies represent an “attractive balance of growth and safety in this volatile environment.” Demand remains strong, he says, and the companies have no exposure to Europe or the Euro.

Feldman reiterated a Buy rating on all three names, pointing out that free cash flow valuation are below historical averages — despite near historical highs for tower demand.

He has a price target of $53 for American Tower, $50 for Crown Castle and $43 for SBA.

In today’s session:

  • Shares of American Tower closed up $1.33, or 3.4%, to $40.38
  • Crown Castle gained $1.21, or 3.5%, to $36.03, and
  • SBA rose 50 cents, or 1.6%, to $32.04

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