American Tower (AMT) Stock Forecast & Price Target

American Tower is positioned for continued financial growth, with its data center revenue expected to increase in the double digits, specifically projected at approximately 11% year-over-year in 2024, marking the third consecutive record year since the acquisition of CoreSite. The company's data center segment has experienced significant performance improvements, including a year-over-year growth of 10.8% in 2023, driven by robust industry dynamics and escalating data consumption demands. Additionally, American Tower anticipates mid-single-digit core organic revenue growth supported by heightened international spending and increasing carrier infrastructure activities, reflecting a favorable outlook for its operations.

American Tower's outlook is negatively affected by a projected decline in capital expenditures (capex) of 21% year-over-year for 2025, marking a significant drop from previous years, which raises concerns about future growth potential. The company's adjusted funds from operations (AFFOps) guidance for 2025 of $10.405 per share represents a 1.3% year-over-year decline and falls short of consensus estimates, primarily due to foreign exchange headwinds and elevated customer churn in international markets, particularly Latin America. Additionally, the company has experienced a slight downward adjustment in its 2026 estimates, reflecting ongoing challenges with customer consolidation, which may continue to pressure growth and increase valuation concerns given the current economic landscape.