Mizuho upgrades American Tower to Outperform, raising target to $205 on growth in leasing and data centers.

Mizuho analyst Vikram Malhotra upgraded American Tower from Neutral to Outperform, raising the price target to $205 from $189. The upgrade is based on signs of improving leasing demand in U.S. and international markets and the undervaluation of its CoreSite data center business, which showed strong revenue growth and has significant development plans for 2026. Despite a 19% stock decline over the past year, American Tower's fundamentals, including a 6% organic tenant billing growth and robust international segment expansions, support a potential re-rating. The company also offers a 4% dividend yield and expects about 14% net income growth in 2026, making it attractive for income-focused investors, though risks like currency headwinds and customer concentration remain.