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 and the stock's attractive valuation, UBS Securities said in a note emailed Wednesday.

American Tower sued EchoStar 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 shares, UBS said. Assuming EchoStar's complete removal from estimates, UBS said American Tower's 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 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