AMT Investor Feedback on the Upgrade

Research evidence excerpt

AMT Investor Feedback on the Upgrade

July 15, 2026

We recently upgraded American Tower Corp (AMT - see here) due to the meaningful underperformance to our coverage

largely driven by Starlink related obsolescence fears. We think investors haven't given company credit for its diversified

portfolio and strong balance sheet.

We provide investor feedback we have received so far below.

Feedback: The most frequent feedback to our upgrade was that SBAC and CCI have similarly underperformed. Why

pick AMT?

Our response: While the whole tower group has been caught up in Starlink-related derating, we think AMT stands

out. First, CoreSite provides a differentiated data center growth engine that peers don't have. Second, AMT's U.S. churn

headwinds are largely behind it, while peers still have some Sprint-related overhang. Third, AMT's balance sheet is

stronger, with lower leverage and greater refinancing flexibility, including access to lower-cost Euro debt. Finally, our

SOTP suggests the market is assigning too little value to AMT's emerging markets (EM) portfolio.

Feedback: SBAC had a take-private bid at $250 that broke on rates (see here). AMT is too large to be acquired, so SBAC

could re-rate more easily if rates fall.

Our response: We agree SBAC has greater take-private optionality simply due to its size. However, we view this as a

rate-dependent catalyst rather than a core reason to prefer SBAC. A successful bid for SBAC would validate the long-

term value of tower infrastructure and would be a positive read-through for AMT.

Feedback: Satellites aren't great for 5G, but EM aren't running much 5G anyway. So this is a relative downside for AMT

versus CCI.

Our response: Even in EM, mobile operators continue investing in terrestrial networks as demand grows, making a