BofA Securities Assumes Crown Castle (CCI) at Neutral

BofA Securities analyst Alex Waters assumes coverage on Crown Castle (NYSE: CCI) with a Neutral rating and a price target of $110.00.

The analyst comments "CCI reported 4Q24 results below BofA and Street estimate last week. 4Q results marked the conclusion of CCI’s fiber solutions business strategic review with sale of the business unit to EQT and Zayo for $8.5bn. Zayo will acquire the fiber business and EQT will acquire the small cell business. The sale is expected to close in 1H26 (we assume 1Q26 close). CCI will now include the fiber segment as ‘discontinued operations’ beginning in 1Q25 and 2025 guidance primarily excludes contributions from the fiber segment. We update our estimates for 4Q results, the fiber sale, and management commentary. We believe the CCI story is on a better footing post the strategic review, fiber sale, and dividend rebase, and reiterate our Neutral rating as we look for progress in closing the fiber sale and an inkling in a domestic carrier activity pick up. We slightly lower our PO to $110 (from $115), which is now based on a ~22x 2026E AFFO multiple (a premium to the REIT sector of ~19x) and update our income rating to 7 (same/higher) from 8 (same/lower)."

For an analyst ratings summary and ratings history on Crown Castle click here. For more ratings news on Crown Castle click here.

Shares of Crown Castle closed at $104.35 yesterday.

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