The Analyst Landscape: 6 Takes On American Tower

6 analysts have shared their evaluations of American Tower AMT during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated American Tower and provided 12-month price targets. The average target is $223.5, accompanied by a high estimate of $248.00 and a low estimate of $196.00. This current average reflects an increase of 1.22% from the previous average price target of $220.80.

Deciphering Analyst Ratings: An In-Depth Analysis

In examining recent analyst actions, we gain insights into how financial experts perceive American Tower. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to American Tower. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of American Tower compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of American Tower's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on American Tower analyst ratings.

Discovering American Tower: A Closer Look

American Tower owns and operates more than 220,000 cell towers throughout the U.S., Asia, Latin America, Europe, and Africa. It also owns and/or operates 28 data centers in 10 U.S. markets after acquiring CoreSite. On its towers, the company has a very concentrated customer base, with most revenue in each market being generated by just the top few mobile carriers. The company operates more than 40,000 towers in the U.S., which accounted for almost half of the company's total revenue in 2023. Outside the U.S., American Tower operates over 75,000 towers in India, almost 50,000 towers in Latin America (dominated by Brazil), 30,000 towers in Europe, and nearly 25,000 towers in Africa. American Tower operates as an REIT.

American Tower: A Financial Overview

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, American Tower showcased positive performance, achieving a revenue growth rate of 3.02% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Real Estate sector.

Net Margin: American Tower's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 3.05%, the company may face hurdles in effective cost management.

Return on Equity (ROE): American Tower's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.94%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): American Tower's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.13%, the company may face hurdles in achieving optimal financial returns.

Debt Management: American Tower's debt-to-equity ratio is notably higher than the industry average. With a ratio of 11.23, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: What Are They?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.