American Tower's International Presence Boosts Growth Above Peers: Analyst

BMO Capital Markets analyst Ari Klein initiated coverage on American Tower Corp AMT at an Outperform rating with a price target of $230. 

The analyst projects AMT to grow in the mid-single-digit range in the long term on customers' stickiness, higher margins, long-term contracts, and lower capex.

Also, the analyst believes the company's non-cancellable lease agreements of $63 billion and master lease agreements with large U.S. carriers offer higher visibility into organic tenant billings (~90% in 2023).

Klein thinks AMT's international presence differentiates it from its peers and adds to overall growth at around 200 bps above the U.S. in the long term. 

The analyst expects AMT to deliver 2023-2025 AFFO/share CAGR of 7.7% (above peers) and dividend growth of 10% per year.

Klien estimates an AFFO of $9.71 for 2023 and $10.50 for 2024. 

Also Read: American Tower Beats Street Topline View, Organic Tenant Billings See Growth

Price Action: AMT shares are trading lower by 0.50% at $194.44 on the last check Thursday.