RBC Capital reiterates American Tower stock rating on data center strength
RBC Capital reiterated an Outperform rating and $205 price target for American Tower (AMT) after its Q3 2026 results. CoreSite, its data center unit, reported $313M revenue, up 17.4% YoY. AMT's AFFO per share growth was flat, but underlying growth is ~7%. The company raised its full-year outlook and spent $950M on share buybacks. AMT's stock may be overvalued, according to InvestingPro.
How this was made
The 30-second read
Why it matters
The earnings beat and reaffirmed rating support a short-term rally, though long-term growth may face challenges.
Market read
Earnings and rating update provide a fresh catalyst for AMT, likely influencing REIT and telecom infrastructure investors.
What to watch
Potential headwinds from DISH churn and refinancing costs could temper growth.
Background
American Tower reported flat AFFO growth due to churn and cost headwinds, but underlying growth remains ~7% and dividend remains strong.
Ticker impact
RBC Capital reiterated an Outperform rating and $205 price target after American Tower's Q3 results showing $2.79B revenue and $1.64 EPS.
likely modest upside as market prices in the reaffirmed target and solid earnings.
The rating and target are new analyst actions tied to fresh earnings data, providing a clear catalyst.
Market effects
Positive signal for REITs focused on communications infrastructure and data centers.
U.S. telecom infrastructure sector may see modest buying pressure.
Limited to investors tracking U.S. tower REITs.
Counterpoint
The reaffirmed target may already be priced in; upside could be limited.
Key entities
- CompanyAmerican Tower
U.S.-listed REIT providing tower infrastructure.
- AnalystRBC Capital
Equity research firm issuing the rating.
