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Crown Castle reinstated with a Buy at BofA

BofA reinstated coverage of Crown Castle (CCI) with a Buy rating and $115 price target while reinstating coverage on the Communications Infrastructure sector. Tower multiples, investor sentiment and estimates have all troughed, the analyst argues. In addition, tower growth is anchored by fixed price escalators, limited development risk, and a wide competitive moat, as well as by being critical for wireless carriers, the analyst tells investors. American Tower (AMT) is the analyst’s tower top pick, while Digital Realty (DLR) is best positioned in data centers, the analyst added.

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