UPDATE: Nomura Upgrades American Tower on Positive Outlook, Upwardly Revised Estimates

In a report published Monday, Nomura analyst Adam Ilkowitz upgraded the rating on

from Neutral to Buy, and raised the price target from $85.00 to $90.00. In the report, Nomura noted, “Tower industry revenue grew over 20% in 1H13, helped by strong carrier network spending and tower acquisitions. On an organic basis, we believe site rental revenue growth of ~11% for the tower operators is a sign of the health of the U.S. wireless industry and elevated capital spending. After 30% portfolio growth in 2012 across the three tower operators, profitability is recovering from diluted levels. Despite a still-tepid global economy, carriers are investing in their networks to respond to consumer demands and traffic growth. With our positive outlook and upwardly revised estimates, we are increasing our target prices for AMT and SBAC both from $85 to $90 and raising AMT to a Buy. We are raising our 2014 AFFO estimates for all three operators given strong activity levels and announced acquisitions.” American Tower Corp. closed on Friday at $73.71.