American Tower Sees Price Target Cut to $214 After 13% Q4 AFFO Rise
Scotiabank cut its price target on American Tower to $214 from $220, citing strong Q4 tower leasing and CoreSite performance despite softer 2026 guidance. CEO Steven Vondran said Q4 AFFO per share rose 13% and outlined growth, efficiency and capital discipline goals as AMT challenges DISH lease default.
1. Scotiabank Price Target Cut
Scotiabank lowered its price target on American Tower to $214 from $220 while maintaining an Outperform rating. The adjustment reflects confidence in core leasing operations but acknowledges that 2026 revenue forecasts came in below prior expectations.
2. Q4 and Full-Year AFFO Performance
In Q4 2025, AFFO per share climbed 13% year-over-year, bringing full-year AFFO growth to 8%. This performance was driven by steady leasing activity across the company’s tower portfolio and robust demand at CoreSite data centers.
3. 2026 Guidance and Strategic Priorities
Management outlined key priorities for 2026 including sustaining revenue growth, enhancing operational efficiency, and disciplined capital allocation. The company plans to shift more capital toward developed markets and reduce leverage toward its target range.
4. DISH Lease Default Dispute
American Tower is pursuing legal action after DISH defaulted on lease payments, seeking recovery of outstanding obligations. Management views resolution of this dispute as critical to preserving cash flows and minimizing credit exposure.