Goldman Sachs Suggests Buying Call Spreads on American Tower Corporation (AMT)

Goldman Sachs is out with a research note this morning, where it suggests that traders buy call spreads on American Tower Corporation AMT ahead of several positive catalysts.

Goldman Sachs Telco Analyst, Jason Armstrong, is bullish on the towers, and sees 28% upside to Buy rated AMT (12 month price target of $64) ahead of a strong year for wireless data and upcoming catalysts on the REIT conversion.

The analyst noted that shares have traded off 5% from the March 8th Bloomberg headlines regarding a potential Sprint and T-Mobile US combination, vs. the S&P 500, which is down 2%, and he sees this as overdone.

Goldman suggests buying the January 2012 $50/57.50 1x2 call spread for $1.30.

American Tower Corporation is a holding company. The company is a wireless and broadcast communications infrastructure company that develops, owns, and operates communications sites, including wireless communications towers, broadcast communications towers and distributed antenna system (DAS) networks.