American Tower Upgraded On Growth Prospects Beyond 2025, Retail Traders Yet To Bite

American Tower Corp (AMT) stock is expected to draw retail attention on Tuesday after Morgan Stanley upgraded the stock to ‘Overweight’ from ‘Equal Weight.’

According to TheFly, the brokerage also raised the price target for the stock to $250 from $213. The new price target implies an upside of 14.9% compared to the stock’s last close.

According to FinChat data, the stock has a consensus analyst price target of $235.05.

Morgan Stanley analysts said that while the U.S. tower industry is mature, it continues to offer mid-single-digit and eventually high-single-digit adjusted funds from operations per share growth over time.

The brokerage also noted that the group will benefit from slowing growth and falling rates in the U.S., as evidenced by the 14% year-to-date gains for U.S. towers.

Morgan Stanley also thinks that 2025 will be a low point for net organic revenue growth in the industry, as carrier investment picks up and consolidation churn fades alongside problems related to forex.

Wells Fargo had also upgraded the stock earlier in March, as per TheFly, on the potential bottoming of billing in 2025.

CEO Steven Vondran had said in February that the firm’s initial expectations for accelerating activity over the course of the year were validated, backed by mid-band deployments in the U.S. and Europe, 4G densification and early 5G upgrades in emerging markets, and another exceptional year of leasing at CoreSite.

Retail sentiment on Stocktwits moved to ‘neutral’ (50/100) territory from ‘bearish’(35/100) a day ago, while retail chatter was ‘low.’

American Tower shares have gained 18.2% year-to-date (YTD).

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