American Tower Earnings: Diversification Beyond U.S. Towers Shows Its Benefits

American Tower provided a similar picture of the current U.S. tower leasing environment as peer Crown Castle last week—activity is slowing, but it is confident that it will continue hitting its leasing growth targets in the next few years with the help of master lease agreements, or MLAs, that have locked in carrier spending commitments. However, American Tower distinguished itself with significant strength across most of its international markets and in its data centers, which collectively account for more than half of the firm’s revenue. Strength in the markets outside U.S. towers led American Tower to raise its 2023 outlook on the top and bottom lines. We are maintaining our $225 fair value estimate and believe the stock remains undervalued.