American Tower price target lowered to $215 from $220 at BMO Capital

BMO Capital lowered the firm’s price target on American Tower (AMT) to $215 from $220 and keeps an Outperform rating on the shares. The company’s Q3 results were “reasonably solid”, with continued services strength, margin upside, and some FX benefit, the analyst tells investors in a research note. BMO further note that data center demand also remains robust, carrier activity continues to improve with applications up 20% y/y, and leverage for the company dipped below 5-times with the management repurchasing shares for the time since 2020. The firm adds however that the Echostar overhang intensified as it seeks to absolve itself from rental payments, and while American Tower believes it maintains the upper hand, a quick resolution seems unlikely.