Morgan Stanley Boosts Price Target Of American Tower Following M&A Reports

American Tower Corp (NYSE: AMT) acquired 6,480 towers from Brazil-based TIM Participações for $1.2 billion on Friday. American Tower also announced the acquisition of over 4,800 towers from Bharti Airtel in Nigeria.

Simon Flannery of Morgan Stanley commented in a note to clients on Monday morning that the acquisition reinforces the company's commitments to international operations, but limits the company's domestic opportunities in the near-term.

The analyst notes that during the third quarter American Tower generated approximately 8 percent of its total revenue from Brazil, a market that has been “strong” for tower operators. However, with the recent auction of 700 MHz spectrum and the upcoming 2016 Olympics in Brazil, the potential for carrier consolidation and restructuring at Nextel International remains an “overhang.”

Shares were reiterated with an Equal-weight rating with a price target raised to $108 from a previous $105.