Analyst Michael Rollins from Citi maintained a Buy rating on Crown Castle (CCI – Research Report) and increased the price target to $108.00 from $106.00.
Michael Rollins has given his Buy rating due to a combination of factors surrounding Crown Castle’s strategic shift and financial outlook. The company’s decision to sell its fiber assets for $8.5 billion and focus on becoming a domestic tower pure-play is a significant move that adds value. This transaction, coupled with a $3 billion share buyback, is expected to enhance shareholder value by approximately $8 per share, despite some challenges such as the unexpected Sprint churn.
Rollins anticipates that the company’s adjusted funds from operations per share (AFFOPS) will see a steady increase from 2025 to 2027, aligning closely with Crown Castle’s projections. The expectation of a mid-single-digit organic site leasing revenue growth and a potential valuation premium further supports the Buy rating. Although there are some near-term uncertainties, such as a dividend cut and AFFOPS dilution, the medium-term growth prospects appear promising, positioning Crown Castle favorably against its competitors.
In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $115.00 price target.