American Tower Sees Slightly Weaker US Growth As International Performance Strengthens

American Tower Corporation AMT shares are trading lower on Tuesday following the release of its second-quarter results.

The company reported second-quarter results, where total revenue increased 3.2% to $2.63 billion. Adjusted EBITDA increased 1.8% to $1.75 billion.

According to Goldman Sachs analyst James Schneider, the stock is likely to remain range-bound, as the results and 2025 guidance generally align with Street expectations.

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Schneider adds that investors seem optimistic about American Tower due to stronger domestic organic growth heading into year-end, the possibility of a cost-cutting update in the second half of 2025, and sector-leading Adjusted Funds From Operations (AFFO) per share growth.

The analyst also points out that American Tower has indirectly benefited from macro trends such as a weaker U.S. dollar and currency movements, which are reflected in the revised guidance.

With Crown Castle CCI delivering better-than-expected results and raising its 2025 domestic activity outlook, investors may expect similarly upbeat commentary from American Tower's earnings call.

Schneider mentions that American Tower’s 2025 core guidance largely matches Street expectations, with a slight improvement in international outlook but a small decline in U.S. organic growth projections.

The analyst also outlines potential downside risks, including additional strain on core tower leasing, international macroeconomic challenges, sustained high interest rates, and unfavorable foreign exchange movements.

Schneider reiterated the Buy rating on American Tower with a price forecast of $250.

Price Action: AMT shares are trading lower by 3.51% to $216.28 at last check Tuesday.  

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