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American Tower (AMT)
NYSE:AMT

American Tower (AMT) AI Stock Analysis

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American Tower

(NYSE:AMT)

Rating:66Neutral
Price Target:
$232.00
▲(7.84%Upside)
American Tower's strong earnings performance and effective corporate events are overshadowed by high leverage and potential overvaluation concerns. While profitability and operational efficiency are robust, strategic measures to manage debt and enhance revenue growth are crucial for future stability.
Positive Factors
Data Center Demand
Data center demand remains strong with record leasing and revenue growth expected to accelerate.
Financial Performance
AMT reported upside 1Q25 results and raised its 2025 guidance for revenue, EBITDA, and AFFO/share.
International Growth
AMT’s international business is expected to see strong growth, particularly in Africa and Europe, with low carrier churn and steady deployments.
Negative Factors
U.S. Carrier Activity
The absence of proof-points of a material acceleration in U.S. carrier activity may lead tower stocks to remain range bound.
U.S. Leasing Performance
2025 U.S leasing of $165-170 million missed estimates of $183 million.

American Tower (AMT) vs. SPDR S&P 500 ETF (SPY)

American Tower Business Overview & Revenue Model

Company DescriptionAmerican Tower Corporation (AMT) is a leading independent owner, operator, and developer of wireless and broadcast communication real estate. Based in the United States, the company manages a vast portfolio of approximately 220,000 communications sites across the globe. American Tower provides essential infrastructure solutions for the wireless industry, including tower leasing, site development, and colocation services, enabling mobile network operators and other companies to deploy and expand their wireless networks efficiently.
How the Company Makes MoneyAmerican Tower primarily generates revenue through leasing space on its communications sites to wireless service providers, such as mobile network operators. The company enters into long-term lease agreements with these tenants, who install their equipment on American Tower's infrastructure. This leasing model provides a stable and recurring revenue stream. Additionally, American Tower engages in site development services, where they assist in the construction and development of new communication sites, further enhancing their portfolio. The company also explores strategic partnerships and investments to expand its global presence and leverage new technologies, such as 5G, to drive growth and maintain a competitive edge in the telecommunications landscape.

American Tower Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 2.62%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
American Tower reported a strong start to 2025, with significant growth in the U.S. services business and CoreSite. However, challenges such as Sprint churn and FX headwinds were noted, along with a cautious outlook due to global economic uncertainties.
Q1-2025 Updates
Positive Updates
Strong Start to Fiscal Year 2025
American Tower exceeded initial expectations across property revenue, adjusted EBITDA, and attributable AFFO per share for the quarter.
U.S. Services Business Growth
The U.S. services business delivered its highest quarter of revenue and gross profit since 2021, with applications rising nearly 30% compared to Q4 2024 and up roughly 60% versus Q1 2024.
CoreSite Performance
CoreSite posted high-single-digit revenue growth, supported by strong leasing and continued pricing favorability.
Successful Capital Market Activities
American Tower issued $1 billion in senior unsecured notes at a weighted average cost of just over 5%, reducing net leverage to 5 times.
Positive International Growth
International property revenue grew 8% excluding FX impacts, with strong performance in emerging markets like Nigeria and Brazil.
Negative Updates
Impact of Sprint Churn
U.S. and Canada property revenue declined approximately 1% due to over 1% negative impact from Sprint churn.
FX Headwinds
The company absorbed approximately 300 basis points of FX headwinds, affecting consolidated property revenue growth.
Challenging Global Economic Backdrop
Concerns were raised about the global economic backdrop, potential uncertainty in emerging markets, and FX volatility.
Company Guidance
During the American Tower First Quarter 2025 Earnings Conference Call, the company provided comprehensive guidance highlighting several key financial metrics. American Tower exceeded initial expectations in property revenue, adjusted EBITDA, and attributable AFFO per share for the quarter. The company reported a 4.7% growth in consolidated organic tenant billings, with U.S. and Canada property revenue growing over 3.5%, excluding non-cash straight-line impacts. The international segment showed a roughly flat year-over-year performance, but with 8% growth excluding FX fluctuations. CoreSite's performance was robust, driven by strong leasing and pricing, contributing to a 9% growth in property revenue. The company revised its full-year outlook, raising expectations for property revenue by $50 million, adjusted EBITDA by $30 million, attributable AFFO by $20 million, and attributable AFFO per share by $0.04, primarily due to updated FX assumptions. For 2025, American Tower expects consolidated organic tenant billings growth of approximately 5%, supported by strong leasing trends and prudent cost management, which expanded cash-adjusted EBITDA margin by nearly 70 basis points to 68.2%.

American Tower Financial Statement Overview

Summary
American Tower demonstrates robust profitability with strong EBIT and EBITDA margins. However, the high debt-to-equity ratio and modest revenue growth present financial risks and challenges for sustained long-term growth.
Income Statement
75
Positive
American Tower's income statement shows solid profitability with a gross profit margin of 74.5% and a net profit margin of 17.3% for TTM. However, the revenue growth is relatively flat compared to the previous year, indicating a need for stronger top-line growth. The EBIT margin of 33.2% and EBITDA margin of 59.1% are strong, reflecting efficient operations.
Balance Sheet
60
Neutral
The balance sheet reveals a high debt-to-equity ratio of 12.56, which could pose financial risks if interest rates rise or cash flows decrease. The equity ratio of 6.1% is low, indicating a heavy reliance on debt financing. Return on equity stands at 51.7%, showcasing strong profitability relative to shareholder investment.
Cash Flow
70
Positive
Cash flow analysis shows a steady operating cash flow with a high operating cash flow to net income ratio of 2.9, indicating good cash conversion. Free cash flow growth is moderate at 2.1% TTM, suggesting stable but not rapid expansion. The free cash flow to net income ratio is strong at 2.1, reflecting effective capital management.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
10.53B10.13B11.14B10.71B9.36B8.04B
Gross Profit
7.21B7.55B7.88B7.45B6.67B5.81B
EBIT
4.81B4.52B3.02B2.35B3.13B2.89B
EBITDA
7.45B6.69B6.01B6.46B5.88B5.00B
Net Income Common Stockholders
1.83B2.25B1.48B1.77B2.57B1.69B
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.10B2.00B1.97B2.03B1.95B1.75B
Total Assets
62.06B61.08B66.03B67.19B69.89B47.23B
Total Debt
44.38B43.95B47.15B47.05B52.01B36.71B
Net Debt
42.28B41.95B45.18B45.02B50.06B34.97B
Total Liabilities
52.12B51.43B55.16B54.79B60.82B42.45B
Stockholders Equity
3.53B3.38B4.20B5.57B5.08B4.09B
Cash FlowFree Cash Flow
3.78B3.70B2.92B1.82B3.44B2.85B
Operating Cash Flow
5.30B5.29B4.72B3.70B4.82B3.88B
Investing Cash Flow
497.70M410.60M-1.70B-2.36B-20.69B-4.78B
Financing Cash Flow
-5.91B-5.45B-3.10B-1.42B16.42B1.22B

American Tower Technical Analysis

Technical Analysis Sentiment
Positive
Last Price215.14
Price Trends
50DMA
213.19
Positive
100DMA
206.03
Positive
200DMA
205.22
Positive
Market Momentum
MACD
0.58
Negative
RSI
54.63
Neutral
STOCH
62.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMT, the sentiment is Positive. The current price of 215.14 is above the 20-day moving average (MA) of 212.62, above the 50-day MA of 213.19, and above the 200-day MA of 205.22, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 54.63 is Neutral, neither overbought nor oversold. The STOCH value of 62.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMT.

American Tower Risk Analysis

American Tower disclosed 21 risk factors in its most recent earnings report. American Tower reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

American Tower Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$86.88B92.287.08%2.11%6.36%-3.54%
69
Neutral
$24.73B30.46-14.67%1.93%-0.29%47.83%
IRIRM
69
Neutral
$30.12B248.77-35.81%3.08%11.04%-37.29%
AMAMT
66
Neutral
$100.64B55.1780.05%3.16%-6.05%-11.75%
WYWY
66
Neutral
$19.36B53.273.71%3.15%-6.56%-54.29%
61
Neutral
$2.83B10.870.41%8.09%5.96%-21.24%
CCCCI
51
Neutral
$43.11B33.81-198.54%4.29%-12.57%-375.80%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMT
American Tower
215.14
27.11
14.42%
CCI
Crown Castle
98.81
7.69
8.44%
EQIX
Equinix
886.76
138.60
18.53%
IRM
Iron Mountain
102.77
16.51
19.14%
SBAC
SBA Communications
228.52
41.32
22.07%
WY
Weyerhaeuser
25.87
-1.98
-7.11%

American Tower Corporate Events

Private Placements and Financing
American Tower Completes €500M Senior Notes Offering
Neutral
May 30, 2025

On May 30, 2025, American Tower Corporation successfully completed a public offering of 500 million euros in senior unsecured notes due 2032, generating net proceeds of approximately 496.8 million euros. The company plans to use these funds to repay existing debt and for general corporate purposes, potentially impacting its financial flexibility and market positioning. The notes, which bear an interest rate of 3.625% per annum, include covenants that limit certain corporate actions and provide options for redemption under specific conditions, reflecting strategic financial management to maintain stability and investor confidence.

The most recent analyst rating on (AMT) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on American Tower stock, see the AMT Stock Forecast page.

Private Placements and Financing
American Tower Announces €500M Senior Notes Offering
Positive
May 21, 2025

On May 21, 2025, American Tower Corporation announced the pricing of its registered public offering of senior unsecured notes due 2032, amounting to €500 million. The notes, bearing an interest rate of 3.625% per annum, are issued at nearly full face value. The net proceeds, estimated at €496.8 million, will be used to repay existing debt under a $6 billion revolving credit facility and for general corporate purposes. This financial maneuver is expected to enhance the company’s fiscal flexibility and potentially strengthen its market position.

The most recent analyst rating on (AMT) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on American Tower stock, see the AMT Stock Forecast page.

Executive/Board ChangesShareholder MeetingsDividends
American Tower Announces Quarterly Cash Distribution
Positive
May 15, 2025

On May 14, 2025, American Tower Corporation held its Annual Meeting of Stockholders virtually, where eleven individuals were elected to the Board of Directors, and stockholders approved the company’s executive compensation and the selection of Deloitte & Touche LLP as its independent accounting firm for 2025. Following the meeting, on May 15, 2025, the company announced a quarterly cash distribution of $1.70 per share, payable on July 11, 2025, to stockholders of record as of June 13, 2025, reflecting its ongoing commitment to shareholder returns.

The most recent analyst rating on (AMT) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on American Tower stock, see the AMT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.