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Citi Analysts Revisit Their Investment Strategy On Crown Castle, Other Wireless Tower Stocks

Citi Analysts Revisit Their Investment Strategy On Crown Castle, Other Wireless Tower Stocks

While noting that tower stocks had rallied 9 percent over the past month and 15 percent year-to-date, Citi’s Michael Rollins said in a report that this was the right time to focus on buying the cheaper assets.

Analyst Michael Rollins expects domestic tower site leasing growth to continue to be in the 4-7 percent range over the next 12-months, “as carriers wait for activity to improve from AT&T, an eventual FirstNet deployment, & deployments of other spectrum bands.”

Crown Castle

Rollins downgraded the rating on Crown Castle International Corp (NYSE: CCI) from Buy to Neutral, while raising the price target from $94 to $109. The stock has gained almost 26 percent y/y, while the dividend yield has declined to 3.5 percent, falling significantly below the average for the meg-cap telcos of 4.3 percent.

Related Link: Citigroup Downgrades Crown Castle To Neutral, Raises PT To $109

Recommended To Buy

The analyst maintained Buy ratings on American Tower Corp (NYSE: AMT) and SBA Communications Corporation (NASDAQ: SBAC). He raised the price target for American Tower from $121 to $134 and that for SBA Communications from $112 to $132.

The Citi report stated that both companies had “cheaper fundamental valuation metrics, while reinvesting a greater proportion of cash flow into their operations and/or shares.” Their valuations were at a discount of 16 percent, while they faced prospects for improved tower gross profit growth.

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Latest Ratings for CCI

Apr 2021JefferiesInitiates Coverage OnBuy
Mar 2021KeyBancUpgradesSector WeightOverweight
Mar 2021Wolfe ResearchInitiates Coverage OnPeer Perform

View More Analyst Ratings for CCI
View the Latest Analyst Ratings


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