Reasons Why American Tower Corporation (AMT) is Strongly Favored by Hedge Funds

American Tower Corporation (NYSE:AMT) is one of the most favored real estate investment trusts according to Hedge Funds.

On January 14, Scotiabank analyst Maher Yaghi reaffirmed an Outperform rating for American Tower Corporation (NYSE:AMT). He lowered his price target forecast from $248 to $220, resulting in a revised upside of almost 20%.

Yaghi’s rating is part of Scotiabank’s revised outlook on the U.S. Real Estate & REITs segment. Such adjustments reflect the firm’s assessment of upcoming fourth-quarter announcements. The firm sees relatively sound investor demand for multifamily and self-storage assets based on their favorable 2026 projections.

On January 12, JPMorgan also maintained an Overweight rating on American Tower Corporation (NYSE:AMT). However, AMT was again subject to a downward price target revision from $250 to $245. The firm attributed this revision to uncertainties linked with EchoStar, which are expected to have an impact on the tower business segment. Despite the adjustment, the firm’s projections still offer a 33.5% upside at the prevailing level.

American Tower Corporation (NYSE:AMT) manages a portfolio of multitenant communications infrastructure assets and offers colocation services where it operates as a tenant-neutral host. The asset base comprises data centers, communication sites, and cell towers spread out across Africa, the Americas, Asia, and Europe.

While we acknowledge the potential of AMT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.