Breaking Down American Tower: 6 Analysts Share Their Views

Throughout the last three months, 6 analysts have evaluated American Tower AMT, offering a diverse set of opinions from bullish to bearish.

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 $230.83, accompanied by a high estimate of $251.00 and a low estimate of $204.00. Observing a downward trend, the current average is 7.05% lower than the prior average price target of $248.33.

Diving into Analyst Ratings: An In-Depth Exploration

A comprehensive examination of how financial experts perceive American Tower is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to American Tower. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of American Tower compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of American Tower's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into American Tower's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on American Tower analyst ratings.

Unveiling the Story Behind American Tower

American Tower owns and operates more than 220,000 cell towers throughout the us, Asia, Latin America, Europe, and Africa. It also owns and/or operates 28 data centers in 10 us 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 us, which accounted for almost half of the company's total revenue in 2023. Outside the us, 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 a REIT.

American Tower: A Financial Overview

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Over the 3 months period, American Tower showcased positive performance, achieving a revenue growth rate of 0.05% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Real Estate sector.

Net Margin: American Tower's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -31.41%, the company may face hurdles in effective cost management.

Return on Equity (ROE): American Tower's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -21.13%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): American Tower's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.23%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: American Tower's debt-to-equity ratio stands notably higher than the industry average, reaching 12.3. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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