td cowen maintains buy rating on american tower stock amid strong demand

On Thursday, TD Cowen analysts reiterated a Buy rating for American Tower stock (NYSE: NYSE:AMT) with a price target of $241.00, significantly above current trading levels. According to InvestingPro data, analyst consensus remains moderately bullish, with price targets ranging from $3.50 to $9.00. The reaffirmation comes as the firm remains optimistic about the company’s future growth prospects, citing strong enterprise demand amid macroeconomic uncertainties.

Analysts from TD Cowen noted that discussions around tower densification are beginning, and demand for GenAI inference fiber could materialize sooner than anticipated. The management of American Tower has confirmed its 2025 U.S. new leasing guidance of $165-170 million and expressed confidence in a long-term growth rate of 5%. This outlook is supported by the company’s strong operational metrics, with InvestingPro data showing an impressive gross profit margin of 84.8% and steady revenue growth of 2.44% over the last twelve months.

The company expects organic growth of approximately 4.3% in 2025, with a projected increase to 5% in the subsequent years to meet its long-term average growth target. Management also anticipates a decline in churn towards the lower end of its historical range of 1-2% as the final phase of Sprint churn concludes in the third quarter of 2025.

American Tower’s management highlighted strong enterprise demand, noting that typical customers are now deploying their own inference models. This shift from relying on hyperscalers to enterprises managing their own models presents significant growth potential due to the large number of enterprise clients.

The reiterated Buy rating and positive outlook reflect TD Cowen’s confidence in American Tower’s strategic direction and the potential for continued growth in the tower infrastructure market.

In other recent news, Uniti Group (NASDAQ:UNIT) Inc. reported first-quarter earnings that did not meet analyst expectations. The company posted an adjusted earnings per share of $0.05, falling short of the consensus estimate of $0.09, and reported revenue of $293.9 million, which was below the projected $296.56 million. Despite these results, Uniti highlighted a 40% increase in consolidated bookings and a decline in the capital intensity of its fiber business. For the full year 2025, Uniti has updated its revenue outlook to range between $1.196 billion and $1.216 billion, with adjusted EBITDA expected to be between $966 million and $986 million. Additionally, shareholders recently approved the merger with Windstream, anticipated to close in the third quarter of this year. Citi analysts maintained a Neutral rating for Uniti, with a price target of $5.30, expressing confidence in the merger’s potential to enhance Uniti’s strategic capabilities. Analyst Michael Rollins noted that while the merger is promising, free cash flow generation is not expected until 2030 due to Windstream’s legacy challenges. At Uniti’s recent annual meeting, shareholders elected all five director nominees and approved executive compensation, while also ratifying PricewaterhouseCoopers LLP as the independent public accountant for 2025.

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