American Tower (AMT) Stock Forecast & Price Target

American Tower's acquisition of CoreSite has been pivotal, leading to a sustained upward trajectory in its data center revenue, which is projected to grow by approximately 11% year-over-year in 2024, marking three consecutive record years. The company's ability to leverage increasing data consumption trends and robust carrier infrastructure spending indicates strong revenue potential and organic growth, particularly in international markets and U.S. densification efforts. Additionally, the sequential acceleration in carrier activity on its towers, with substantial increases in mid-band spectrum deployment, enhances the company's operational performance and revenue generation capabilities.

American Tower faces significant challenges due to a projected 21% decline in capital expenditures (capex) year-over-year in 2025, which could indicate a weakening investment outlook. Additionally, the company's guidance for 2025 AFFO reflects a decrease of 1.3% year-over-year, falling short of analyst expectations, with further negative impacts anticipated from foreign exchange headwinds and elevated churn in international markets. Overall, the elevated reliance on a concentrated customer base, coupled with macroeconomic factors such as high interest rates, could adversely affect the company's long-term growth and valuation metrics.