Crown Castle (CCI – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Ari Klein from BMO Capital maintained a Hold rating on the stock and has a $98.00 price target.
Ari Klein has given his Hold rating due to a combination of factors surrounding Crown Castle’s current market position and strategic decisions. The company is facing challenges with growth, particularly with significant churn expected in 2025, which affects its financial outlook. Despite the defensive shift in the market that has benefited Tower REITs, Crown Castle’s growth remains constrained.
Another major factor influencing the Hold rating is the anticipated fiber transaction. The potential sale of Crown Castle’s fiber/small-cell business, estimated at over $8 billion, could significantly dilute the company’s AFFO per share by approximately 25%, leading to a likely dividend reduction. With the company’s shares trading at a high multiple of its AFFO, the potential for re-rating appears limited, prompting a cautious stance on the stock.
According to TipRanks, Klein is a 4-star analyst with an average return of 4.8% and a 55.26% success rate. Klein covers the Real Estate sector, focusing on stocks such as SBA Communications, Park Hotels & Resorts, and American Tower.