ATEX Pulls Back on Private LTE Hype: Is Anterix Undervalued at $86?

Anterix (ATEX) shares have been pulling back in recent weeks, dropping 26.95% over the past 90 days and 14.39% over the last month. However, the company's longer-term momentum remains strong, with a year-to-date share price return of 255.56% and a 1-year total shareholder return of 268.14%. This suggests that investors are reassessing both Anterix's growth potential and its execution risks.

The Apple tie-up, which announced iPhone support for private LTE networks using Anterix 900 MHz spectrum, may be contributing to this pullback. While the deal is seen as a positive development, it has also highlighted the company's challenges in converting interest into contracts and realizing expected spectrum value.

Anterix still has roughly 85% of its spectrum yet to be monetized, and any delays in private LTE rollouts or slower-than-expected spectrum clearing and licensing progress could impact earnings. Despite this, analysts see Anterix as undervalued, with a fair value estimate of $86.00.

The company's P/E ratio is 23.6x, below its peer average of 40.2x but above the fair ratio of 4.1x. This suggests that investors are paying a premium for future execution, which could be a concern if enthusiasm cools.