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On Monday, JMP Securities analyst reiterated a Market Outperform rating on American Tower Corporation (NYSE:AMT), maintaining a $225.00 price target. The firm’s positive stance is based on the expectation of strong fourth-quarter 2024 results, which are anticipated to be driven by approximately 5% core organic revenue growth. This growth rate could reach approximately 5.5% if the effects of Sprint churn are excluded. With current revenue of $11.17 billion and an EBITDA of $6.97 billion in the last twelve months, InvestingPro analysis suggests the company is currently fairly valued, with analysts setting price targets between $195 and $250.
American Tower, a real estate investment trust and a prominent player in the Specialized REITs industry according to InvestingPro, is expected to face some headwinds due to the recent strength of the U.S. dollar. Approximately 37% of the company’s property revenue comes from international operations, which may be negatively impacted by currency fluctuations. Despite this, JMP Securities anticipates these factors to be already accounted for in the company’s 2025 outlook. The company maintains a strong dividend track record, having raised its dividend for 14 consecutive years, with a current yield of 3.38%.
The company had previously provided preliminary guidance for its 2025 Adjusted Funds From Operations (AFFO), but noted that it could be slightly lower due to foreign exchange headwinds. JMP Securities believes that any potential downside in American Tower’s stock is relatively limited, suggesting confidence in the company’s performance despite the currency challenges. InvestingPro data reveals a "GOOD" overall financial health score, with particularly strong marks in profitability metrics. Subscribers can access over 30 additional financial insights and metrics about AMT through the comprehensive Pro Research Report.
American Tower has established a significant presence in the telecommunications infrastructure industry, with a broad portfolio of towers that facilitate wireless communication across multiple continents. The company’s financial health and future performance are closely watched by investors, given its role in supporting the expanding wireless network demands globally.
The analyst’s comments underscore a belief in the resilience of American Tower’s business model and its ability to navigate the complexities of international revenue streams amid a fluctuating currency landscape. As the company prepares to release its fourth-quarter 2024 results, the market will be looking to see if American Tower can meet or exceed the organic revenue growth expectations set forth by JMP Securities.
In other recent news, American Tower Corporation has announced significant updates to its credit agreements, extending the maturity dates of certain facilities and adjusting financial terms. The multicurrency senior unsecured revolving credit facility and the unsecured term loan now have a maturity date of January 28, 2028, while the senior unsecured revolving credit facility is extended to January 28, 2030. Additionally, American Tower has appointed Rajesh Kalathur to its board of directors. Kalathur, with his extensive experience in finance and technology, is expected to provide valuable insights as the company continues its growth trajectory.
BMO Capital Markets has adjusted its outlook on American Tower, lowering the price target to $210 but maintaining an Outperform rating. The firm projects net organic growth in the U.S. at 4.0% for the fourth quarter of 2024 and 4.4% for the full year 2025, with international growth slightly higher. BMO Capital also forecasts American Tower’s adjusted funds from operations to be $2.30 for the fourth quarter of 2024 and $10.45 for 2025, slightly below consensus estimates.
The company has highlighted its strategy to maintain flexibility in its capital structure through the recent credit facility amendments. These developments demonstrate American Tower’s ongoing efforts to manage its financial operations and strategic growth effectively.
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