Raymond James has reiterated a Strong Buy rating on American Tower Corporation and kept its $229.00 price target after the tower operator reported fourth-quarter 2025 results and issued initial guidance for 2026. The broker noted that the quarter came in mostly ahead of its internal estimates, although results were below some Street forecasts that had different assumptions about DISH.
The shares were trading near $190 with a price-to-earnings ratio of 30.11 and a price/earnings-to-growth ratio of 0.18, metrics the analyst house flagged as indicating the stock is inexpensive relative to near-term earnings growth expectations.
One of the notable changes in the company's guidance is the explicit removal of DISH from projections effective January 1, 2026. Raymond James characterized the move by tower companies to strip DISH from guidance as a clearing event for the sector - in other words, a downside item that is largely priced into equities and that could create upside should settlements emerge. The firm pointed to DISH's exit from the wireless business and its default on owed tower rents as the underlying cause of the change in expectations.
American Tower has taken several capital allocation actions in recent quarters. The company sold half of its stake in the satellite direct-to-device operator ASTS while retaining a sufficient holding to remain represented on the operator's board. In the fourth quarter of 2025, American Tower repurchased $365 million of its common stock - the largest amount it has bought back in a year since 2017. The company still has $1.6 billion remaining under an authorized repurchase program.
The $89 billion tower operator has also increased its dividend for 15 consecutive years; the current yield stands at 3.58% based on the present dividend level. In its commentary, Raymond James said it does not view Starlink or other satellite initiatives as posing a competitive threat to terrestrial wireless networks or to tower assets.
Financially, American Tower exceeded consensus estimates for the fourth quarter. Reported earnings per share amounted to $1.75, a 19.05% surprise versus the forecasted $1.47. Revenue for the period reached $2.74 billion compared with projected revenue of $2.68 billion. Those beats underline the company's operational performance even as the market digested the shift in DISH-related assumptions.
Despite the stronger-than-expected results, the stock registered a modest decline in pre-market trading, reflecting investor focus on guidance changes and broader market conditions. Analysts and market participants continue to watch capital allocation, DISH-related developments, and the interplay between satellite initiatives and terrestrial infrastructure.
Context and implications
Raymond James' reiteration of a Strong Buy rating and its unchanged $229.00 target reflect the broker's assessment that much of the downside tied to DISH has been absorbed by the market and that American Tower's cash returns to shareholders, stable dividend record, and recent buybacks support equity value. The firm also emphasized that potential settlements with DISH could provide incremental upside for tower owners.
Investors should weigh the company's positive earnings and revenue surprises alongside the removal of DISH from guidance and the broader competitive dynamics involving satellite services. The balance between these factors will influence near-term investor sentiment and valuation trajectories.