American Tower (AMT) Valuation: Is the Current Discount an Overlooked Opportunity?

American Tower (AMT) shares have retreated about 4% over the past month and are down 13% for the past 3 months, continuing a challenging period for the stock. Despite the decline, investors remain attentive to the company’s recent performance trajectory.

See our latest analysis for American Tower.

While American Tower’s share price has slipped over the past quarter, its year-to-date return remains modestly positive, suggesting momentum has softened recently after a stretch of long-term underperformance. The one-year total shareholder return stands at -11.4%, underscoring a period of adjustment as the market reassesses growth versus risk.

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With shares lagging over several timeframes, but notable discounts to analyst price targets and solid recent growth, the key question is whether American Tower is now undervalued or if future gains are already factored in. Is this an overlooked buying opportunity, or is the market prudently pricing in the outlook?

Most Popular Narrative: 23.7% Undervalued

American Tower's latest fair value estimate sits well above its last traded price, highlighting a sizable gap between market and narrative projections. The most popular narrative frames renewed leasing and expansion plans as pivotal drivers for future value creation. This sets up a debate about whether the current discount truly captures what is ahead.

The rollout and enhancement of 5G infrastructure by U.S. carriers, with aggressive plans to complete upgrades by the end of 2026, is expected to drive significant leasing activity and positively impact property revenue and adjusted EBITDA. The expansion of CoreSite with new data centers and strong leasing demand is set to support revenue growth and deliver high returns, contributing to improved earnings.

Read the complete narrative.

Curious what kind of growth assumptions justify this optimistic price target? One critical financial forecast in this narrative shapes the entire investment thesis, but it might surprise you. Want to uncover the big bet that could make or break American Tower's future story?

Result: Fair Value of $249.21 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent global economic uncertainty and potential interest rate increases could undermine American Tower’s growth forecasts and threaten its expected margin improvements.

Find out about the key risks to this American Tower narrative.

Build Your Own American Tower Narrative

If you prefer to dig into the numbers and build your own investment story, you can create a personalized narrative in just a few minutes. Do it your way.

A great starting point for your American Tower research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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