Mizuho analyst Vikram Malhotra upgraded American Tower (NYSE: AMT) from Neutral to Outperform with a price target of $205.00 (from $189.00).

The analyst comments "Re-rate driven by bottoming fundamentals and unlocking value in AMT's DC business. AMT has underperformed the last 12 months, down 19% vs REITs up 10%. With the stock at 16.5x AFFO (20+% below LT avg), we believe several negatives are priced in. We see two drivers of multiple re-rate, driving our Outperform rating and $205 price target. #1 We see US and several non-US cell tower fundamentals inflecting based on AI-related / select 5G investments. We also see several EBITDA margin benefits. Our Base Case '26E-'27E AFFO of $10.86 and $11.59 reflect these. #2 Data Center business is materially undervalued with several paths to unlocking value. Our SOTP analysis suggests the DC business (10% of rev) trading at ~14x EV/EBITDA relative to public comps at 22x+. We see several avenues for value creation that can also boost run-rate cash-flow growth."

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Shares of American Tower closed at $176.41 yesterday.