American Tower’s Underlying Business Remains Strong Amid Peripheral Headwinds

Organic leasing growth was strong during American Tower's third quarter, and the firm slightly raised its 2022 outlook for property revenue and adjusted EBITDA despite factoring in a negative impact from currencies and a customer in India that is having financial difficulties. However, the outperformance in the underlying business was not significant enough to make us change our organic leasing expectations for next year or longer term, and the macroeconomic environment contributes to greater uncertainty in 2023 than we think is typical. We are not making material changes to our forecast and are maintaining our $210 fair value estimate.