Analyst Note| Matthew Dolgin, CFA |
The takeaway from American Tower’s first-quarter results was consistent with what we learned from its earlier-reporting peers. The U.S. market is strong, and inflation is boosting international sales metrics. For American Tower, the nearly 1% increase to its 2022 sales guidance was mostly attributable to higher expectations for pass-through revenue outside the U.S. that results from fuel inflation. Still, we see an international business that is strong and leads us to favor American Tower’s business over its peers, though we still think the stock is expensive relative to our unchanged $210 fair value estimate.