American Tower Outperform Target Rises to $205, AFFO Growth Seen at 8%
AMT•RBC Capital Markets upgraded American Tower to Outperform, lifting its price target to $205 from $195, citing expectations of leading U.S. net organic tower growth and stronger data center prospects. Goldman Sachs initiated coverage with a Buy rating, forecasting roughly 8% annual AFFO per share growth through 2029.
1. Analyst Upgrades and Price Targets
RBC Capital Markets upgraded American Tower to Outperform and raised its price target to $205 from $195, highlighting superior organic revenue growth prospects. Goldman Sachs initiated coverage on American Tower with a Buy rating while assigning Neutral ratings to Crown Castle and SBA Communications.
2. Growth Forecasts and Financial Estimates
Goldman Sachs projects roughly 8% annual AFFO per share growth for American Tower between 2026 and 2029, and domestic organic tower growth of 4-5% annually from 2027 through 2029. RBC raised its 2026 revenue forecast to $10.98 billion, adjusted EBITDA to $7.28 billion, and AFFO per share to $11.07.
3. Key Growth Drivers and Valuation Implications
Analysts point to American Tower’s CoreSite data center unit, AI-driven edge computing demand, network densification, spectrum deployments, fixed wireless expansion and future 6G investment as primary growth drivers. International exposure and favorable foreign exchange trends are expected to bolster results, while refinancing higher-cost debt may modestly raise interest expense.
