Street Calls of the Week
Investing.com - RBC Capital downgraded American Tower (NYSE:AMT) to Sector Perform from Outperform on Wednesday, while also reducing its price target to $220.00 from $260.00. According to InvestingPro data, AMT currently trades at $193.32, with analysts maintaining an overall bullish consensus and price targets ranging from $217 to $281.
The downgrade comes amid RBC’s analysis of potential impacts from recent spectrum transactions involving carriers, EchoStar, and SpaceX, along with a review of site leasing trends in the United States. Despite current market challenges, AMT maintains its position as a prominent player in the Specialized REITs industry, with a solid dividend yield of 3.54% and a 14-year track record of consecutive dividend increases.
RBC adjusted its models, financing and foreign exchange assumptions, and valuation parameters for U.S. tower companies, resulting in new price targets for American Tower, Crown Castle, and SBA Communications.
Crown Castle has become RBC’s preferred pick within the sector due to its renewed tower-only focus, resolution of recent management changes, and potential for cost-cutting and shareholder returns.
RBC noted that investor enthusiasm toward the tower group remains muted, with some rotational pressure into other sectors, though it suggested that fixed wireless access-driven colocation activity could potentially provide upside to current U.S. site leasing revenue trajectories.
In other recent news, American Tower Corporation reported mixed second-quarter 2025 results but raised its 2025 guidance for property revenue, EBITDA, and AFFO per share. The company also increased its net organic growth forecast for the Latin America and Africa/Asia Pacific regions. In a move to strengthen its financial position, American Tower priced a registered public offering of senior unsecured notes totaling $575 million, with allocations due in 2030 and 2035. Additionally, S&P Global Ratings upgraded American Tower to ’BBB+’ with a stable outlook, citing stable earnings growth and strong margins in its U.S. tower business.
TD Cowen responded to these developments by raising its price target for American Tower to $249 while maintaining a Buy rating. In another significant event, American Tower reached an agreement with AT&T Mexico concerning the payment of tower rents, which had been withheld due to an ongoing legal dispute. The company also announced the appointment of Gene Reilly, a real estate veteran, to its Board of Directors, adding his extensive experience to its leadership. These developments highlight American Tower’s ongoing strategic and financial initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.