Boston, Massachusetts-based American Tower Corporation (AMT) is a leading independent owner, operator, and developer of multitenant communications real estate. With a market cap of $102.7 billion, American Tower’s operations span the Americas, Europe, Africa, and Asia-Pacific.
American Tower has underperformed the broader market over the past year. Over the past 52 weeks, AMT stock has surged 23.5% compared to the S&P 500 Index’s ($SPX) 26.1% returns. In 2024, AMT gained 1.8%, lagging behind SPX’s 16.5% returns on a YTD basis.
Narrowing the focus, AMT outperformed the JPM Realty Income ETF’s (JPRE) 16.6% returns over the past 52 weeks but underperformed the 6.3% gains on a YTD basis.
Despite underperforming the broader market over the past year, AMT has performed well with its share rising by 12.8% over the past three months. AMT stock rose 3.8% following the release of its Q2 earnings on Jul. 30. The company’s revenue grew 4.6% year over year to $2.9 billion, and its funds from operations (FFO) per share surged 13.4% to $2.79 and surpassed the consensus estimates by 14.3%, making investors delighted.
For fiscal 2024, ending in December, analysts expect American Tower to report an EPS growth of 1.7%, year over year to $10.04. The company’s earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 20 analysts covering the AMT stock, the consensus rating is a “Strong Buy.” That’s based on 15 “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
This configuration is slightly more bullish than two months ago, with 14 analysts recommending a “Strong Buy.”
On Aug. 15, RBC Capital analyst Jonathan Atkin raised AMT’s price target to $236 from $225, maintaining an "Outperform" rating. The bump reflects American Tower’s stronger financial guidance and regulatory approval for its India disposition, alongside improved valuation multiples and easing interest rates.
AMT’s mean price target of $233.79 represents a premium of 6.3% from current price levels. The Street-high target of $254 indicates a potential upside of 15.5%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
