American Tower shares rose after Bernstein upgraded the stock to Outperform and set a $207 price target. The upgrade comes as tower REITs work through higher-rate pressure and softer carrier spending. The investment case centers on durable structural demand from ongoing 5G densification, growth in fixed wireless access, and increasing data center contribution. American Tower reported Q1 2026 results that beat expectations, with EPS of $1.84 versus $1.57 expected and revenue of $2.74 billion. Management raised full-year guidance, including AFFO per share of $10.90 to $11.07 and total property revenue of $10.59 billion to $10.74 billion. Data centers grew 18% in the quarter, supporting a second growth leg.
"Bernstein's constructive view leans on durable structural demand: 5G densification still rolling out, fixed wireless access growth, data center adjacency, and declining interest rate sensitivity as the Fed cycle matures. American Tower's Q1 2026 results back that thesis up, with EPS of $1.84 versus $1.57 expected and revenue of $2.74 billion, a beat on both lines."
"American Tower's management raised the full-year outlook, guiding to adjusted funds from operations (AFFO) per share of $10.90 to $11.07 and total property revenue of $10.59 billion to $10.74 billion. Data centers, up 18% in the quarter, are emerging as a real second leg of growth."
"American Tower is one of the world's largest independent owners and operators of wireless and broadcast communications infrastructure, with a market cap of roughly $84.8 billion. CEO Steve Vondran told investors that "American Tower is now operating from its strongest strategic position in more than a decade.""
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