On June 27, American Tower rose 4.62% in regular trading, trading at $176.4/share, with turnover of $204 million. The rally was driven by RBC Capital Markets upgrading the stock from Sector Perform to Outperform and raising its price target to $205 from $195.
RBC designated American Tower as its preferred tower company pick, citing superior US net organic tower growth among peers through fiscal year-end amid a higher interest rate outlook. The firm highlighted favorable trends at CoreSite data center assets, with recent site visits supporting its bullish thesis, and noted that broader sector weakness creates an opportune window for share buybacks.
The upgrade follows strong Q1 results in which American Tower posted adjusted FFO of $2.84 per share, beating the FactSet consensus estimate of $2.70 by approximately 10%. Revenue of $2.738 billion also exceeded the $2.657 billion estimate. The company subsequently raised full-year guidance across multiple core financial metrics including property revenue, adjusted EBITDA, and AFFO per share. Analysts polled by FactSet assign an average Buy rating with a mean price target of $217.38.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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