Street Calls of the Week
Investing.com - KeyBanc has reiterated its Overweight rating and $120.00 price target on Crown Castle (NYSE:CCI), currently valued at $42 billion, following the company’s third-quarter 2025 results. InvestingPro analysis indicates the stock is currently undervalued, with analysts setting targets ranging from $102 to $127.
Crown Castle reported better-than-expected performance across all key metrics for the quarter, prompting the company to raise its guidance for site-leasing, services, adjusted EBITDA, and AFFO per share. The company maintains a solid 71.5% gross profit margin and offers an attractive 4.36% dividend yield. InvestingPro data reveals several more key insights about Crown Castle’s financial health and growth prospects.
KeyBanc analyst Brandon Nispel noted that Crown Castle is "best positioned among Towers given its pure U.S. Tower exposure, cost takeout opportunity, and capital return."
The analyst projects that Crown Castle could deliver mid-20% AFFO per share growth in the first year following the closure of its fiber sale, with high single-digit to low double-digit growth thereafter.
According to KeyBanc, this growth potential makes Crown Castle look attractive at its current valuation, with multiple paths to growth through mid-single-digit organic growth, cost efficiency initiatives, and share buybacks.
In other recent news, Crown Castle reported its third-quarter earnings for 2025, revealing a significant earnings per share (EPS) of $0.74, which exceeded the forecasted $0.52 by 42.31%. However, the company reported revenue of $1.01 billion, falling short of the anticipated $1.06 billion by 4.72%. Despite these mixed financial results, Crown Castle’s stock showed a slight aftermarket increase. Analysts have responded to these developments with varying perspectives. Citizens maintained a Market Outperform rating with a price target of $125, highlighting the company’s slightly better-than-expected results despite challenges from Sprint. Meanwhile, Goldman Sachs reiterated a Neutral rating with a $117 price target, noting the upside in key metrics such as site rental revenue, adjusted EBITDA, and AFFO. The firm also mentioned an increase in guidance, which could potentially drive the stock modestly higher. These recent developments reflect the ongoing evaluation of Crown Castle’s performance by financial analysts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.