12:34 PM EDT, 10/29/2025 (MT Newswires) -- American Tower's ( AMT ) solid Q3 results and slightly higher full-year guidance were "overshadowed" by a legal dispute with Echostar ( SATS ) over tower payments, but the market's reaction is "overdone" given the wireless infrastructure provider's minimal 2% revenue exposure to Echostar ( SATS ) and the stock's attractive valuation, UBS Securities said in a note emailed Wednesday.

American Tower ( AMT ) sued EchoStar ( SATS ) unit Dish Wireless after Dish sent a letter stating it was no longer obligated to pay future tower payments, Bloomberg reported Wednesday, citing a lawsuit filed last week.

The nonpayment had already been weighing on American Tower ( AMT ) shares, UBS said. Assuming EchoStar's ( SATS ) complete removal from estimates, UBS said American Tower's ( AMT ) shares would trade at 17 times and 16 times 2026 and 2027 estimated adjusted funds from operations, respectively, well below the company's 10-year average multiple of 21 times.

American Tower's ( AMT ) services momentum remains strong, with US application volumes up 20% and colocation applications up 40% as carriers expand networks, while 2025 leasing is projected at $161 million with churn near 1%. Data center revenue grew 14% year over year, driven by hybrid-cloud and artificial intelligence demand, with further growth of 15% expected in Q4 and 14% in 2026, UBS said.

UBS reiterated a buy rating and a $260 price target, calling the pullback an "attractive opportunity," according to the report.

Price: 182.48, Change: -0.24, Percent Change: -0.13