Boston, Massachusetts-based American Tower Corporation (AMT) is a leading independent owner, operator and developer of multitenant communications real estate. With a market cap of $91.2 billion, American Tower’s operations span the Americas, Europe, Africa, and Indo-Pacific.

The real estate giant has substantially underperformed the broader market over the past year. AMT stock prices have plunged 9.6% on a YTD basis but gained 6.3% over the past year compared to the S&P 500 Index’s ($SPX) surge of 25.5% in 2024 and 35.7% over the past 52-week period.

Narrowing the focus, AMT has also lagged behind the Real Estate Select Sector SPDR Fund’s (XLRE) 8.1% gains on a YTD basis and 27% returns over the past year.

American Tower’s stock prices plunged 4.2% after the release of its disappointing Q3 earnings on Oct. 29. The company’s total operating revenues remain flat at $2.5 billion same as the year-ago quarter, missing Wall Street’s topline expectations. Its property revenues declined 1% compared to the year-ago quarter due to a decline in leasing revenue. Additionally, American Tower observed a massive drop in profitability due to a $1.2 billion loss incurred from the sale of its Indian operations, this translated into a net loss to shareholders of $792.3 million for the quarter down from $586.9 million net profit reported in the year-ago quarter.

However, AMT’s adjusted funds from operations (FFO) grew 2.6% year-over-year, reaching $1.2 billion. Moreover, its adjusted FFO per share of $2.64 surpassed analysts’ estimates by a notable 7.8%.

For the current year, ending in December, analysts expect AMT to report a 2.1% year-over-year growth in adjusted FFO per share to $10.08. Moreover, the company has a robust earnings surprise history. It surpassed analysts’ FFO estimates in each of the past four quarters.

AMT stock has a consensus “Moderate Buy” rating overall. Out of the 21 analysts covering the stock, 14 recommend “Strong Buy,” one advises “Moderate Buy,” and six suggest a “Hold” rating.

This configuration is slightly less bullish than two months ago when 21 analysts had an overall consensus “Strong Buy” rating, among which 15 analysts recommended a “Strong Buy” rating.

On Oct. 30, Scotiabank analyst Maher Yaghi maintained a “Sector Outperform” rating, but lowered the price target to $236.

AMT’s mean price target of $241.22 represents a premium of 23.6% to current price levels. Meanwhile, the Street-high target of $260 suggests a potential upside of 33.2%.