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Investing.com - KeyBanc raised its price target on Crown Castle (NYSE:CCI) to $125.00 from $122.00 on Friday, while maintaining an Overweight rating on the stock. According to InvestingPro data, the stock is currently trading near its 52-week high of $120.92, having gained over 32% in the past six months.
The infrastructure real estate investment trust delivered second-quarter results that exceeded expectations across all key metrics, according to KeyBanc. Following the strong performance, Crown Castle raised its guidance for core leasing, services, and adjusted funds from operations per share (AFFO/sh). The company, with a market capitalization of $49.6 billion, has demonstrated strong momentum with an 8.34% return in the past week alone.
KeyBanc views Crown Castle as one of its favorite investment ideas, citing expectations for accelerating tower leasing activity in the coming quarters. The firm also anticipates a potential deleveraging transaction involving the company’s fiber assets, which could create opportunities for improved operating efficiency.
The analyst firm projects significant AFFO per share growth for Crown Castle, forecasting mid-20% growth in 2026 and sustainable low double-digit growth over the longer term. This growth trajectory ranks Crown Castle among the fastest-growing companies in KeyBanc’s coverage universe.
KeyBanc expects Crown Castle’s valuation to increase as investors recognize the improving business fundamentals and growth potential of the company.
In other recent news, Crown Castle reported second-quarter earnings that surpassed analyst expectations, posting earnings per share of $0.67 compared to the estimated $0.48. Revenue also exceeded forecasts, reaching $1.08 billion against a consensus estimate of $1.04 billion. This performance was attributed to a 4.7% organic growth in site rental billings, excluding Sprint cancellations, along with improved operational efficiency. Following these results, Raymond (NSE:RYMD) James raised its price target for Crown Castle to $124, maintaining a Strong Buy rating, citing better-than-expected U.S. Tower Leasing and improved costs. JMP Securities reiterated its Market Outperform rating with a $125 price target, highlighting the company’s potential recovery after a 30% dividend cut in the previous quarter. The dividend reduction was partially counterbalanced by a $6.0 billion share repurchase program, described by JMP as concluding one of the longest restructuring processes they have evaluated. These recent developments indicate a positive outlook for Crown Castle, as the company raised its full-year outlook following the strong quarterly performance.
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