Company Reports

We expect American Tower will see steady demand over time, but we don't believe growth will exceed the mid-single-digit range absent acquisitions. We like that the firm has pulled back on acquisitions over the past three years, as opportunities to invest at good returns have been limited. If the market opens up, American Tower has the balance sheet strength to buy assets, but we expect it to remain focused on internal growth and share repurchases for the time being.

American Tower delivered 2.5% revenue growth in the third quarter, down from 4.7% last quarter, driven by weak services revenue, tepid US tower leasing activity, and less favorable currency movements. The data center business continues to outperform, with revenue growth accelerating to 17%.

Shares of US wireless carriers and tower firms traded lower after SpaceX claimed that it will use satellite dishes to build a wireless network capable of competing in the US wireless industry. SpaceX also claimed that it will launch 10 times as many V3 broadband satellites as V2.

American Tower showed consistent operating trends in the second quarter, with revenue growth accelerating on favorable currency shifts and increased costs passed through to tenants. These factors and strong data center results prompted the firm to increase its revenue outlook for the year by 1%.

American Tower's first-quarter property revenue increased 7.3%, or 2.8% excluding currency movements, reflecting the loss of EchoStar revenue. Higher interest expense and maintenance capital spending also limited adjusted funds from operations growth to 2.7%.

American Tower is a geographically diversified wireless tower company, complemented by a small US datacenter business. We expect the tower business will see steady demand over time, but we don't believe growth will exceed the mid-single-digit range absent acquisitions. We like that the firm has pulled back on acquisitions over the past three years, as opportunities to invest at good returns have been limited. If the market opens up, American Tower has the balance sheet strength to buy assets, but we expect it to remain focused on internal growth and share repurchases for the time being.

American Tower is a geographically diversified wireless tower company, complemented by a small US datacenter business attached. We expect the tower business will see steady demand over time, but we don't believe growth will exceed the mid-single-digit range absent acquisitions. We like that the firm has pulled back on acquisitions over the past three years, as opportunities to invest at good returns have been limited. If the market opens up, American Tower has the balance sheet strength to buy assets, but we expect it to remain focused on internal growth and share repurchases for the time being.

American Tower delivered 7.5% revenue growth in the fourth quarter, with 5.9% underlying organic tenant billings growth driven by solid results in the US. For 2026, the firm expects only 1% organic billings growth, with 3 percentage points of pressure from the loss of EchoStar revenue.

American Tower revenue increased 7.7% during the third quarter, or 6.1% excluding currency moves. US tower segment growth remains muted, with the last of the Sprint churn working through. Management disclosed that EchoStar has disputed its obligation to pay future rents following its spectrum sale.

American Tower is a geographically diversified tower company that aims to leverage its tower expertise to capitalize on the growing global demand for mobile data capacity. We expect the tower business will see steady demand over time, but we don't believe growth will exceed the mid-single-digit range absent acquisitions. We like that the firm has pulled back on acquisitions over the past three years, as opportunities to invest at good returns have been limited. If the market opens up, American Tower has the balance sheet strength to buy assets, but we expect it to remain focused on internal growth and share repurchases for the time being.

Shares of US tower firms American Tower, Crown Castle, and SBA Communications are under renewed pressure following EchoStar's announcement that it will sell spectrum to SpaceX. The three stocks are now down 8%-14% since EchoStar announced its first spectrum sale, to AT&T, two weeks ago.

American Tower is a geographically diversified tower company, operating in 25 countries across nearly all continents. Management continues to leverage its tower knowledge and experience to capitalize on the growing global demand for mobile data capacity, investing organically while also seeking acquisitions when its balance sheet allows.

American Tower reported 4.7% organic tenant billing growth, or 5.5% excluding Sprint-related cancellations, in the second quarter. Management slightly raised its full-year outlook for revenue, adjusted EBITDA, and adjusted funds from operations due to favorable foreign-exchange effects.

American Tower's 4.7% same-tower organic revenue growth across its portfolio—5.5% when excluding Sprint-related cancellations—provides a strong start to the year. The 68% adjusted EBITDA margin was a 160-basis-point jump sequentially, and only 20 points off last year's highest margin in a decade.

American Tower is the largest operator of cellular towers in the world. Over the past decade, the business has made the transition into a geographically diversified tower company, operating in 25 different countries across nearly all continents. Management continues to use its tower knowledge and experience to capitalize on growing mobile data consumption across the world.

The data center and communications equipment stocks we cover traded down by midsingle digits while investors pushed tower stocks higher in response to the US tariff announcement April 2. We see little risk of material tariff-related headwinds for these businesses, and therefore we maintain our fair value estimates across our coverage.

Shares of American Tower traded higher after its fourth-quarter earnings release, as US carrier activity points to improvements in spending over the last year. Additionally, data centers continue to be a valuable source of growth as enterprises rush to secure new capacity. We raise our fair value estimate to $237 from $230 for narrow-moat American Tower to account for the time value.

American Tower is the largest operator of cellular towers in the world. Over the past decade, the business has made the transition into a geographically diversified tower company, operating in 25 different countries across nearly all continents. Management continues to use its tower knowledge and experience to capitalize on growing mobile data consumption across the world.

American Tower’s third-quarter results were in line with expectations. Total organic tenant billing expanded 6% as carriers continue densifying their networks due to wireless data consumption growth. Rampant data center demand, driven by cloud adoption and artificial intelligence-fueled spending, drove management to slightly raise its full-year revenue and profitability guidance. After updating our model for improved near-term data center revenue and completion of the India tower portfolio sale, we maintain our $230 fair value estimate.

American Tower’s second-quarter 2024 earnings were a bright spot among the US tower firms as it continues to realize good organic tenant billings growth across all its markets, even as broader carrier activity remains fairly tepid. Increased guidance for property revenue, EBITDA, and AFFO was largely due to a partial reversal of revenue reserves in India that outweighed currency exchange headwinds realized in many of its international markets. We don’t view management’s guidance changes as material to our long-term view of American Tower but are impressed with the quarter and optimistic that the firm will drive even better organic tenant billings growth as the market improves in 2025. We are maintaining our $230 fair value estimate.