Towers: Spectrum Approval, a Cash Escrow, SBAC Chatter - and a Partridge in a Pear Tree

Research evidence excerpt

Towers: Spectrum Approval, a Cash Escrow, SBAC Chatter - and a Partridge in a Pear Tree

Towers: Spectrum Approval, a Cash Escrow, SBAC Chatter - and a Partridge in a Pear Tree Equity Research

Investment Thesis, Valuation and Risks

American Tower REIT, Inc. (AMT)

Investment Thesis

We are Overweight AMT shares on the U.S. steadily improving organic billings in late 2025 / early 2026, the lapping of the final slug of

Sprint churn in late 2025, continued growth in its data center segment, and a reasonable valuation relative to both REIT averages and its

tower peers.

Target Price Valuation for AMT

Our $200 price target is based on a DCF, with a 7.5% WACC and 20x terminal value EBITDA multiple (a ~3x discount vs. AMT's historical 5-

year average of ~24x), which we believe is justified based on a slower long-term growth outlook and higher-for-longer rates.

Risks to Our Price Target and Rating for AMT

Downside risks to the stock include lower leasing rates domestically, DISH non-payment, reduced wireless capex related to consolidation

and technological advancements that enhance the voice capacity of wireless carrier networks internationally, and the integration risk of

scaling its data center platform.

Crown Castle International Corp. (CCI)

We are Equal Weight CCI shares as it transitions to a pure-play U.S. tower operator. While its transition will result in higher-quality and

lower-volatility earnings growth going forward given its focus on the U.S., its organic growth rate is likely to trail its 2 primary peers over

the next 2-3 years, which could constrain its ability to trade at a more material multiple premium.

Target Price Valuation for CCI

Our $85 price target is based on a ~20x EV/EBITDA multiple on our 2027E EBITDA and ~19x P/AFFO. Our price-target assumes a ~2x