American Tower Named Top US Tower Pick as Analysts Turn Bullish
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
American TowerREITs
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Analyst sentiment for American Tower Corporation (AMT) turned more bullish on June 26, 2026, with the stock identified as the top US tower pick. The shift follows the company's strategic pivot into data centers and a stable outlook for core US tenancy. The move was reported by investing.com, noting enhanced conviction among institutional research desks. American Tower's share price closed at $245.60, reflecting a year-to-date gain of 15.3% against the S&P 500's 8.1% rise.
The last major wave of analyst upgrades for tower stocks occurred in Q1 2023 when T-Mobile's network integration spurred leasing demand. Current upgrades reflect a different macro and business cycle phase. The 10-year Treasury yield stands at 4.4%, presenting a headwind for high-yielding REITs, yet infrastructure assets with growth profiles are being re-rated.
Two sequential catalysts triggered the renewed bullishness. First, American Tower closed its $4.8 billion CoreSite acquisition in late 2025, establishing a high-margin data center platform. Second, major US mobile network operators have provided clearer 2027-2028 capital expenditure guidance for 5G densification and early 6G planning.
This clarity alleviates concerns over a potential slowdown in organic tenant billings growth. The company's pivot adds a crucial growth vector beyond traditional macro tower leasing, which has matured in the US market.
American Tower's financial metrics show the impact of its strategic shift. The company reported Q1 2026 property revenue of $2.78 billion, a 5.7% year-over-year increase. Adjusted funds from operations (AFFO) reached $1.44 billion for the quarter.
The CoreSite data center business now contributes an annualized revenue run-rate of approximately $1.2 billion. This elevates the total data center segment contribution to nearly 15% of consolidated revenue, up from zero two years prior.
| Metric | Q1 2025 | Q1 2026 | Change |
|---|---|---|---|
| Property Revenue | $2.63B | $2.78B | +5.7% |
| US Tenant Billings Growth | 3.1% | 3.8% | +70 bps |
| Net Debt to Annualized EBITDA | 5.4x | 5.7x | +0.3x |
Peer comparisons highlight relative strength. Crown Castle's (CCI) AFFO per share declined 2% year-over-year in its latest quarter. SBA Communications (SBAC) trades at a 2026 estimated EV/EBITDA of 20.1x, while American Tower commands 21.5x, reflecting a premium for its data center exposure.
The bullish call on American Tower signals a sector rotation within real estate towards infrastructure with visible growth. Data center REITs like Equinix (EQIX) and Digital Realty (DLR) may see incremental pressure as American Tower becomes a comparable hybrid play. Wireless carriers Verizon (VZ) and AT&T (T) face a stable but persistent cost line item for tower leases, limiting margin expansion.
The primary counter-argument is use. American Tower's net debt rose to $42.3 billion post-acquisition, and its debt-to-EBITDA ratio of 5.7x is above the 5.0x comfort level for many conservative REIT investors. Higher-for-longer interest rates directly pressure interest coverage.
Positioning data shows institutional net inflows into the communications REIT sector totaled $480 million over the past month. Short interest in AMT has declined to 1.2% of float, down from 2.1% at the start of the year, indicating reduced bearish conviction.
The next major catalyst is American Tower's Q2 2026 earnings report, scheduled for July 29, 2026. Analysts will scrutinize the organic growth rate within the CoreSite segment and churn metrics. The Federal Reserve's FOMC meeting on September 17, 2026, will influence the cost of capital for the entire REIT sector.
Key technical levels to monitor include a support zone at $235, representing the 100-day moving average. Resistance sits near the 52-week high of $252.80. A sustained break above this level on heavy volume would confirm the bullish technical thesis.
Investors should watch for new large-scale anchor tenant announcements for American Tower's data center campuses, which would provide forward revenue visibility beyond 2027.
American Tower is a Dividend Aristocrat, having increased its dividend for 13 consecutive years. The current annualized dividend is $6.40 per share, yielding approximately 2.6%. The company's AFFO payout ratio is a conservative 68%, providing a cushion for future increases. The data center expansion is expected to contribute higher-margin cash flows, supporting the dividend growth trajectory even if interest rates remain elevated.
American Tower's strategy leverages its existing tower sites and fiber connections for edge data centers, focusing on low-latency applications. Digital Realty primarily operates large-scale hyperscale campuses. The markets are complementary, with American Tower targeting a different, more distributed segment of demand. The CoreSite acquisition gave American Tower a portfolio of 27 core data centers in major US metros, bridging the gap between edge and hyperscale.
Following a cluster of analyst upgrades to Buy or Outperform in January 2023, the Tower REIT Index (a custom basket of AMT, CCI, SBAC) delivered an average total return of 22% over the subsequent 12 months, outperforming the broader Real Estate Select Sector SPDR Fund (XLRE), which returned 8%. The outperformance was driven by multiple expansions as leasing demand accelerated, a precedent that current bulls cite.
Analyst conviction in American Tower rests on its successful pivot into data centers, which diversifies revenue and provides a new growth engine beyond mature macro tower leasing.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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