In a report released today, Ari Klein from BMO Capital upgraded Crown Castle to a Buy, with a price target of $120.00.
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Ari Klein has given his Buy rating due to a combination of factors that suggest a positive outlook for Crown Castle. The company’s decision to sell its fiber business, although expected to finalize by mid-2026, is seen as a strategic move that enhances the attractiveness of its U.S. tower operations. This shift is anticipated to improve the company’s financial metrics, as the fiber business was previously a drag on returns due to its capital-intensive nature.
Additionally, the appointment of a new CEO is expected to remove uncertainties and provide a clearer direction for the company. The potential for margin expansion, coupled with a planned $3 billion share repurchase program post-sale, further strengthens the investment case. These factors, along with the current trading metrics, suggest that Crown Castle is well-positioned for a re-rating as a pure-play in the U.S. tower market, justifying the Buy rating.
In another report released on August 15, Barclays also maintained a Buy rating on the stock with a $119.00 price target.