Crown Castle stock price target lowered to $120 at KeyBanc on valuation

Investing.com - KeyBanc has lowered its price target on Crown Castle (NYSE:CCI) to $120.00 from $125.00 while maintaining an Overweight rating on the stock. Currently trading at $93.57, the specialized REIT with a market capitalization of $40.8 billion shows mixed signals according to InvestingPro data.

The firm continues to view Crown Castle favorably, citing the company’s planned sale of its Fiber/Small Cell business as a value-unlocking move for shareholders.

KeyBanc believes the divestiture will provide investors access to a pure-play U.S. Tower company with mid-single-digit organic revenue growth, cost reduction potential, and a share buyback program.

The firm projects that in the first year after completing the Fiber/Small Cell sale, Crown Castle could achieve AFFO (Adjusted Funds From Operations) per share growth exceeding 20%.

KeyBanc also sees potential for approximately $100 million in SG&A cost savings over time, which combined with share buybacks could drive long-term AFFO per share growth in the high-single to low-double-digit range.

In other recent news, Crown Castle has been the focus of multiple analyst upgrades following its second-quarter results. The company exceeded expectations across key metrics, leading KeyBanc to raise its price target to $125, maintaining an Overweight rating. Similarly, Raymond James increased its price target to $124, citing strong U.S. Tower Leasing performance and improved costs. Crown Castle’s cost-cutting progress has also been noted by Wells Fargo, which upgraded the stock to Overweight and raised its price target to $125. BMO Capital upgraded Crown Castle to Outperform, influenced by the company’s decision to sell its fiber business, a move expected to conclude by mid-2026. JMP Securities maintained a Market Outperform rating, highlighting the company’s potential recovery following a significant dividend cut. The dividend reduction was partially mitigated by a $6 billion share repurchase program. These developments reflect a positive outlook from analysts on Crown Castle’s strategic initiatives and financial performance.

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