American Tower (AMT) Stock Forecast & Price Target

American Tower's gross profit demonstrated a positive growth trajectory, increasing by 5.5% quarter-over-quarter to $159 million, alongside an expansion of gross margins from 59.3% to 60.7% in 1Q25. Contributing to this accelerated growth is the anticipated demand from the buildout of DISH's fourth facilities-based network and improvements in churn rates in India. Additionally, the performance of CoreSite has been noteworthy, showing an impressive growth rate of 13.5% year-over-year and 7.3% quarter-over-quarter in 2Q25, reflecting a solid underlying demand in the data center sector.

The outlook for American Tower's stock appears negative due to a marked decline of 20 basis points in international organic tower growth (OTBG) in the second quarter, attributed to lower escalators in revenue growth. Additionally, the substantial reliance on a concentrated customer base—primarily the top mobile carriers—exposes the company to risks associated with reduced activity in 5G upgrades, as evidenced by penetration rates of approximately 85%, 70%, and 50%. These factors, combined with the unchanged mid-term growth expectations projected in the low single digits, suggest potential challenges in achieving robust revenue growth moving forward.