Bernstein turns bullish on American Tower, sees 17% upside
Investing.com --Bernstein has upgraded American Tower Corporation from “Market-Perform” to “Outperform,” arguing that investor fears around satellite competition, interest rates, and Dish Network exposure have become overstated.
The research firm maintained its $207 price target on the tower operator, implying roughly 17% upside from the stock’s closing price of $177.28 on May 18, 2026. Bernstein analysts said the company is trading at a five-year low valuation multiple despite what they described as a resilient and high-quality business model.
Analysts led by Madison Rezaei highlighted American Tower’s portfolio of approximately 149,000 towers across developed markets, emphasizing its stable cash flows, long-term lease agreements, and predictable growth profile. The report noted that the company continues to generate around 5% AFFO growth even after accounting for Dish-related churn, foreign exchange pressures, and refinancing costs.
A key focus of the report was the perceived threat from direct-to-device (D2D) satellite technology. Bernstein argued that satellite-based wireless services are unlikely to fully replace terrestrial infrastructure because of limitations in capacity, indoor coverage, and network performance in dense urban markets. Instead, analysts believe future satellite services will likely require partnerships with mobile network operators or supplemental terrestrial deployments — developments that could ultimately increase demand for tower infrastructure.
The brokerage also addressed concerns about rising interest rates, noting that American Tower has reduced its floating-rate debt exposure to approximately $1.4 billion, with most maturities extending to 2028. Bernstein said the company’s stronger credit profile and defensive business characteristics should help mitigate the impact of higher Treasury yields.
Another overhang is the fallout from EchoStar Corporation and Dish-related lease disputes. Bernstein noted that American Tower has already removed Dish revenues from its outlook, limiting further downside risk. The report also pointed to a newly established $2.4 billion FCC escrow fund intended to reimburse infrastructure providers affected by Dish defaults, potentially providing a recovery floor for the company.