AMT Upgraded to Outperform
RBC Capital upgrades AMT to Outperform and raises price target to $205 from $195 due to superior organic revenue growth and favorable trends at CoreSite
AMT RBC Capital Upgrades AMT to Outperform, Raises PT to $205 from $195 Analyst comments: "Despite headwinds from rising interest rate expectations and the apparent unwind of the LEO bull thesis, we are upgrading AMT to Outperform based on: (1) superior organic revenue growth versus peers; and (2) favorable trends at CoreSite, for which we now assign a higher target multiple of 25x, up from 21x previously. Coupled with our minor estimate revisions, our price target increases to $205 from $195. AMT is now our preferred tower company pick. Separately, we consider the broader weakness to be an opportune time for share buybacks across the sector.
We are upgrading following recent stronger performance versus peers in towers and underappreciated data center assets. Last month saw an uptick in investor enthusiasm around towers on the potential for a LEO-driven terrestrial buildout. S. net organic tower growth among peers through FY26.
" Analyst: Jonathan Atkin