Citigroup's Teleconomy Update: Buy AMT

Citigroup has published its Teleconomy 2010 Wireless update report, stating: "We are refreshing our valuation framework given the prospect for the tower stocks to benefit from: 1) the increasing likelihood for tower companies to retain tax efficiency by using a REIT structure beginning with American Tower as soon as the 2012 tax year; 2) the year-to-date strength in REIT valuations (up 14%) relative to the S&P 500 (up 2%) that includes some multiple expansion for Data Center REITs that we view as comparables; & 3) expectation for interest rates to remain low over the next 6-12 months." Citigroup includes American Tower Corporation AMT, Crown Castle International Corp. CCI, and SBA Communications Corporation SBAC, and of the group prefers Buy-rated American Tower Corporation. American Tower Corporation closed yesterday at $50.58.