Shares of American Tower Corporation (NYSE: AMT) are currently projected to reach an average target price of $226.67 over the next twelve months, according to a consensus from twenty-one research firms monitoring the company. The stock has received an overall rating of “Moderate Buy,” with six analysts recommending a hold, thirteen advising a buy, and two issuing strong buy ratings.
Recent analyses have prompted several investment firms to adjust their price targets for American Tower. For instance, Jefferies Financial Group lowered its target from $226.00 to $202.00 while maintaining a buy rating in a report released on December 16, 2023. Similarly, Morgan Stanley revised its price objective from $255.00 to $235.00, also rating the stock as overweight in a report dated December 4, 2023.
Other notable adjustments include TD Cowen, which decreased its target from $249.00 to $235.00 and reaffirmed its buy rating. JPMorgan Chase & Co. made a smaller adjustment, lowering its target from $255.00 to $250.00, while Wells Fargo & Company set a new target of $200.00, down from $210.00, also categorizing the stock as overweight.
Institutional investors have also been actively adjusting their holdings in American Tower. Notably, Norges Bank acquired a new stake valued at approximately $1.37 billion during the second quarter of 2023. Lazard Asset Management LLC significantly increased its position by 1,984.8% in the third quarter, now owning 4,464,382 shares valued at $858.55 million.
Furthermore, JPMorgan Chase & Co. boosted its stake by 24.3%, owning 12,666,082 shares worth $2.8 billion after acquiring an additional 2,474,328 shares. Viking Global Investors LP expanded its holdings by 233.5%, now possessing 2,797,125 shares valued at $618.22 million. Collectively, institutional investors control 92.69% of American Tower’s stock.
Recent Stock Performance and Earnings Report
On the trading floor, American Tower shares opened at $175.86 on the last trading day. The company boasts a market capitalization of $82.33 billion, a price-to-earnings ratio of 28.09, and a beta of 0.92. Its 50-day simple moving average stands at $178.54, while the 200-day average is $195.66. The stock has fluctuated, with a 52-week low of $170.77 and a high of $234.33.
American Tower recently reported its earnings for the third quarter on October 28, 2023. The real estate investment trust announced earnings per share (EPS) of $2.78, surpassing the consensus estimate of $2.64 by $0.14. The company’s revenue for the quarter reached $2.72 billion, exceeding the forecast of $2.65 billion, and representing a year-over-year revenue increase of 7.7%.
Looking ahead, American Tower has projected its full-year 2025 guidance at $10.60 to $10.72 EPS. Analysts anticipate the company will report $10.14 EPS for the current fiscal year.
Dividend Declaration and Company Overview
In addition to its earnings report, American Tower has declared a quarterly dividend of $1.70, payable on February 2, 2024, to shareholders recorded on December 29, 2023. This dividend represents an annualized yield of 3.9%, with a payout ratio currently at 108.63%.
American Tower, classified as a real estate investment trust (REIT), specializes in owning, operating, and developing wireless and broadcast communications infrastructure. Its primary business model focuses on leasing space on various communications sites, including towers and rooftops, to wireless carriers, broadcasters, and governmental agencies. The company’s strategy revolves around long-term site leases, ensuring recurring revenue that aligns with the growing demand for wireless connectivity.
Overall, American Tower’s performance in the market, coupled with positive earnings results and a robust dividend strategy, suggests a favorable outlook for investors in the upcoming year.
