Wolfe Research upgraded American Tower to Outperform from Peer Perform. The research firm set a price target of $188.
Analysts expect a reacceleration in predictable organic growth. This outlook follows the resolution of market disruptions from the Sprint/T-Mobile merger and DISH rent losses.
The tower industry is currently stabilizing after a period of significant churn. American Tower's valuation appears compelling relative to its large-cap REIT peers.
The upgrade reflects growing optimism that primary headwinds affecting U.S. tower growth are beginning to subside.