RBC Capital Upgrades American Tower to 'Buy'
RBC Capital has upgraded American Tower to a 'buy', setting a new price target of $205, a 22.10% upside from the current price.
Key Points
- RBC Capital upgraded American Tower (NYSE:AMT) to a 'buy' on June 26, 2026, with a $205 price target.
- RBC Capital's $205 price target implies 22.10% upside from American Tower Corporation's ($AMT) current $167.89 share price.
- Shares of AMT traded near $169.05 on Friday with a market cap of $78.6 billion and a P/E ratio of 27.3.
- Insider selling included transactions by Ruth Dowling and Robert Joseph Meyer earlier this year.
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RBC Capital has upgraded American Tower Corporation (NYSE:AMT) to a 'buy' rating, with a new price target of $205. This change, announced on June 26, 2026, reflects a positive outlook on the company's future performance.
RBC Capital vs. the S&P 500
Hypothetical, simulated performance of disclosed positions vs. the S&P 500. Not realized profit and not investment advice. Past performance does not indicate future results. Details.
American Tower Corporation Stock Down 4.7%
Shares of American Tower traded at approximately $169.05 on Friday. The company, which operates as a real estate investment trust (REIT) specializing in multitenant communications real estate, boasts a market capitalization of about $78.6 billion. It has a P/E ratio of 27.3 and a forward P/E of 24.5. The stock's 52-week range is between $165.08 and $234.33, with a 50-day moving average of $181.30 and a 200-day moving average of $181.90. The company's debt-to-equity ratio stands at a high 444.55.
$AMT price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
American Tower reported revenues of approximately $10.8 billion, reflecting a growth rate of 6.8%. The company achieved a net margin of 26.8% and a return on equity of 29.9%. Its earnings per share (EPS) were $6.19. The next earnings report is scheduled for July 28, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
3 target raises vs 2 cuts.
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EPS & revenue
EPS beat estimates by 13.6%. Revenue beat estimates by 2.0%.
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Profit surprise
EBITDA met by 2 percent. Operating income beat by 7 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
1 upgrade, 3 target raises, 2 target cuts.
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Earnings quality
Gross margin down 1.3 points. Operating margin down 6.5 points. Positive free cash flow.
Earnings Call Summary
American Tower had a strong first quarter with reported revenue of $2.74 billion, beating consensus by about $53 million, and earnings per share of $2.84 versus consensus of $2.50. Organic growth excluding DISH churn was 4 percent in towers and 17 percent in the CoreSite data center business, driven by growing mobile data demand, AI workload expansion and a major inflection in interconnection activity. Management emphasized that structural tailwinds including 5G densification, eventual 6G deployment, and AI-driven infrastructure needs position the company well for mid to upper single-digit annual growth going forward.
Guidance Management raised full year property revenue guidance by about $145 million to approximately $10.9 billion, driven by foreign exchange tailwinds and accelerated straight-line revenue. They expect organic tenant billings growth around 4 percent when excluding one-time DISH churn, plus data center growth of about 13 percent. They reaffirmed attributable AFFO per share growth expectations in the mid to upper single-digit range over the long term.
Fine but not compelling. Acceptable results that likely do not create a meaningful forward reset.
Dividend
American Tower pays an annual dividend rate of $6.98, yielding 4.14%. The dividend payout ratio is 82.26%.
Insider Buying and Selling at American Tower Corporation
Several insiders have sold shares in recent months. Ruth Dowling, Executive Vice President and Chief Administrative Officer, sold 416 shares on April 29, 2026, at an average price of $177.54 as part of a planned transaction. Robert Joseph Meyer, Senior Vice President and Advisor to the CFO, sold 153 shares on June 1, 2026, at $187.53.
Analysts Set New Price Targets
On June 26, 2026, RBC Capital upgraded American Tower to a 'buy' with a $205 target. Previously, Bernstein also upgraded the stock to a 'buy' on May 19, 2026, with a $207 target. The consensus among analysts is a 'buy' rating, with an average target price of $216.14 based on 22 analyst opinions.
About American Tower Corporation
American Tower Corporation is a leading global real estate investment trust based in Boston, Massachusetts. The company owns, operates, and develops multitenant communications real estate, primarily leasing space on its sites to wireless service providers and other tenants. Under the leadership of CEO Steven O. Vondran, American Tower provides additional services such as site application, zoning, and construction management to support its leasing operations. Founded in 1995, the company employs around 4,866 people.
Bottom Line
RBC Capital's upgrade of American Tower to a 'buy' with a $205 target price suggests confidence in the company's growth prospects. Investors keep a close eye on such analyst ratings as they provide insights into expected performance. Remember, these ratings and targets are based on past data and projections, and actual performance may vary.
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