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American Tower Set to Outpace Competitors' Revenue Growth, RBC Says

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American Tower Set to Outpace Competitors' Revenue Growth, RBC Says

American Tower (AMT) is positioned to outpace its competitors in organic revenue growth as the real estate investment trust benefits from positive trends at its CoreSite data center unit, RBC Capital Markets said in a note emailed Friday.

The brokerage upgraded the rating on American Tower to outperform from sector perform and raised the price target to $205 from $195.

"Last month saw an uptick in investor enthusiasm around towers on the potential for a (low earth orbit)-driven terrestrial build-out," RBC analyst Jonathan Atkin said. "While this thesis has waned, and the tower sector has been pressured by the higher interest rate outlook, we expect (American Tower) to post the strongest US net organic tower growth compared with peers through (fiscal 2026)."

Recent visits to CoreSite assets "support our upbeat view on the segment outlook," Atkin wrote.

RBC raised the REIT's 2026 revenue estimate to $10.98 billion from $10.95 billion, while holding its 2027 forecast steady at $11.24 billion. The brokerage lifted adjusted funds from operations estimates for both 2026 and 2027, on a per-share basis.

Earlier in June, American Tower terminated its collocation agreement with EchoStar (ECHO) unit DISH Wireless.

American Tower's first-quarter results exceeded Wall Street's estimates at the end of April, driven by mobile data usage, cloud adoption and artificial intelligence workloads.

The company's shares were up 3.6% in late Friday afternoon trading. They are down 0.5% so far this year.

Price: $174.60, Change: $+5.88, Percent Change: +3.49%

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