American Tower, the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Ari Klein from BMO Capital maintained a Buy rating on the stock and has a $215.00 price target.
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Ari Klein has given his Buy rating due to a combination of factors that highlight American Tower’s strong financial performance and growth potential. The company’s third-quarter results were solid, with notable strength in services and improved margins, alongside a favorable foreign exchange impact. Additionally, the demand for data centers remains strong, and carrier activity has shown improvement, with a 20% year-over-year increase in applications.
Ari Klein also notes that American Tower’s leverage has decreased, as the company repurchased shares for the first time since 2020, indicating financial stability. Despite the ongoing issue with Echostar, which is seeking to avoid rental payments, the valuation remains attractive at 16 times the 2026 AFFO. The company’s performance exceeded expectations, with AFFOps and EBITDA surpassing consensus estimates, and international organic billings growth outpacing projections, driven by lower churn rates. These factors collectively support the Buy rating for American Tower’s stock.
According to TipRanks, Klein is a 3-star analyst with an average return of 3.7% and a 53.24% success rate. Klein covers the Real Estate sector, focusing on stocks such as Crown Castle, American Tower, and Digital Realty.
In another report released on October 20, Wells Fargo also maintained a Buy rating on the stock with a $210.00 price target.