UPDATE: Citigroup Lowers PT on Crown Castle International Following 2Q Headline Results

In a report published Wednesday, Citigroup analyst Michael Rollins reiterated a Neutral rating on Crown Castle International CCI, but lowered the price target from $85.00 to $74.00.

In the report, Citigroup noted, “Crown reported 2Q headline results that were ahead of our estimates and consensus for total revenue, OIBDA and AFFO per share, whereas operating fundamentals for the site colocation were generally in-line. We believe the more important issue is that Crown's reported AFFO has diverged meaningfully from its competitors that we believe is helping Crown establish a better value for its underlying site colocation business relative to its competitors. Based on our further study of these issues, we believe Crown deserves a valuation discount on reported P/AFFO of around 2 multiple points. We have reduced our target price from $85 to $74.”

Crown Castle International closed on Tuesday at $71.92.