American Tower stock price target lowered to $245 by BMO Capital

Published 29/07/2025, 21:34
American Tower stock price target lowered to $245 by BMO Capital

Investing.com - BMO Capital has lowered its price target on American Tower (NYSE:AMT) to $245.00 from $250.00 while maintaining an Outperform rating on the stock. The prominent specialized REIT, currently valued at over $100 billion, has demonstrated strong dividend reliability with 14 consecutive years of increases. According to InvestingPro data, analyst consensus remains bullish with price targets ranging from $217 to $288.

The telecommunications real estate investment trust delivered mixed second-quarter results, with particular strength observed in international markets, data centers, and services segments.

American Tower’s second-quarter adjusted funds from operations (AFFOps) slightly exceeded expectations, prompting the company to raise its guidance. However, BMO Capital noted that the upside was largely driven by favorable foreign exchange movements.

U.S. carrier application volumes increased 50% year-over-year, which, combined with near-record services revenues, serves as a positive leading indicator for future leasing activity. This strength may help address concerns related to lowered U.S. leasing guidance, which BMO Capital believes is mostly timing-related.

BMO Capital projects American Tower’s 2025 normalized AFFO growth at 7%, which it considers a good proxy for future growth potential, while noting that an improving balance sheet provides additional financial flexibility.

In other recent news, American Tower Corporation reported its second-quarter 2025 earnings, which fell short of analysts’ expectations. The company’s earnings per share (EPS) came in at $0.78, significantly below the forecasted $1.68, marking a 53.57% negative surprise. Despite this, American Tower’s revenue slightly exceeded projections, reaching $2.63 billion compared to the anticipated $2.59 billion. These results were closely watched by investors and analysts alike. The earnings miss has drawn attention to the company’s financial performance. Analyst firms have yet to publicly update their ratings following the earnings announcement. Investors are likely considering these developments as they assess American Tower’s future prospects.

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