American Tower initiated with a Neutral at Mizuho

Mizuho initiated coverage of American Tower with a Neutral rating and $205 price target. The analyst says American Tower is a core holding for many long-only real estate investment trust and telecom investors given it is an “attractive, lower beta play” on increased wireless device penetration and data usage, and artificial intelligence. However, the firm sees a balanced risk/reward and views interest rates as “critical and underappreciated” to the call on towers. A likely higher-for-longer rate environment, steady carrier capex and somewhat lower revenue visibility are balanced by already negative positioning, a 5G use case emerging, and a well positioned data-center business, the analyst tells investors in a research note.