Goldman Sachs Upgrades American Tower (AMT) to Buy, 'Favorite Telecom Infrastructure Stock'

(Updated - January 10, 2023 5:52 AM EST)

Goldman Sachs analyst Brett Feldman upgraded American Tower (NYSE: AMT) from Neutral to Buy with a price target of $245.00 (from $215.00).

The analyst comments "Favorite Telecom Infrastructure Stock: American Tower (upgrade from Neutral). We are broadly constructive on towers and data center stocks, as we believe underperformance in 2022 was primarily driven by macro factors, most notably higher interest rates. Our analysis implies that rates-driven pressure on towers and data centers stocks has historically created attractive buying opportunities, and we hold the same view heading into 2023. Our upgrade of AMT reflects this view, as well as 3 additional factors. 1) We believe that AMT will achieve the highest rate of average domestic organic growth during 2023-2027 (5.3%) vs. both CCI (4.3%) and SBAC (3.9%) driven by ramping 5G demand and declining Sprint churn. 2) We see potential for AMT to favor buybacks over further scaled M&A over the near-term as it focuses on integrating recent deals and trends towards its targeted net leverage. 3) Valuation looks attractive, with AMT trading at 23x 2023 AFFO vs. 26x for other high-growth REITs. 12-month price target: $245 (13% total return)."

For an analyst ratings summary and ratings history on American Tower click here. For more ratings news on American Tower click here.

Shares of American Tower closed at $219.30 yesterday.

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