2 days ago
TD Cowen Affirms Buy Rating on American Tower (AMT) with $241 PT, Citing Solid Demand
On June 5, TD Cowen analysts maintained a Buy recommendation on American Tower Corporation (NYSE:AMT) with a target price of $241, far surpassing present trading levels. The firm reiterated its confidence in AMT's growth trajectory, noting robust enterprise demand despite ongoing macroeconomic headwinds.
A wide angled view of a high-rise office building, the windows reflecting a nearby cityscape.
TD Cowen analysts observed that initial talks on tower densification have started, and demand for GenAI inference fiber might arise sooner than expected. American Tower Corporation (NYSE:AMT) management upheld its 2025 US leasing target of $165-170 million and signaled confidence in a 5% long-term growth rate.
American Tower forecasts roughly 4.3% in organic growth this year, with an expected boost to 5% in the coming years to fulfill its long-term growth objective. Management also projects a reduction in churn to the lower end of its average prior range of 1-2% as the last phase of Sprint churn finishes in Q3 of 2025.
AMT's management pointed out solid enterprise demand, commenting that average customers are now using their individual inference models. This transition from depending on hyperscalers to businesses managing their models presents considerable growth prospects because of the vast number of enterprise customers.
American Tower Corporation (NYSE:AMT) is one of the world's largest real estate investment trusts, known for owning and operating a major network of communications real estate.
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Disclosure: None.
