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Investing.com - RBC Capital upgraded Crown Castle (NYSE:CCI), a $41.6 billion market cap specialized REIT, to Outperform from Sector Perform on Wednesday, maintaining a price target of $112.00. According to InvestingPro analysis, the stock is currently trading near its Fair Value, offering a 4.4% dividend yield.
The upgrade reflects Crown Castle’s renewed focus on its tower business, resolution of recent management changes, and potential for cost-cutting and shareholder returns, according to RBC Capital. While InvestingPro data shows analysts expect sales to decline this year, the company’s overall Financial Health score remains Fair, with particularly strong cash flow metrics.
RBC Capital named Crown Castle its preferred pick within the tower sector, citing these positive developments while noting broader investor enthusiasm toward the tower group remains muted.
The firm adjusted price targets for other companies in the sector, lowering American Tower (NYSE:AMT) to $220 from $260 and SBA Communications (NYSE:SBAC) to $235 from $255.
RBC Capital also downgraded American Tower to Sector Perform from Outperform while maintaining an Outperform rating on SBA Communications, suggesting potential future upside from fixed wireless access-driven colocation activity.
In other recent news, Crown Castle has reported second-quarter results that exceeded expectations, prompting several analyst firms to adjust their ratings and price targets. KeyBanc raised its price target to $125.00, citing strong performance across key metrics and an increase in guidance for core leasing, services, and adjusted funds from operations per share. Similarly, Raymond James increased its target to $124.00, highlighting improved U.S. Tower Leasing and cost management. Wells Fargo upgraded Crown Castle to Overweight, noting the company’s cost-cutting initiatives are ahead of schedule. BMO Capital also upgraded Crown Castle to Outperform, emphasizing the potential long-term benefits of the company’s planned sale of its fiber business. KeyBanc maintained an Overweight rating but slightly adjusted its price target to $120.00, viewing the planned sale as a value-unlocking move. These developments indicate a positive outlook from analysts, reflecting confidence in Crown Castle’s strategic moves and financial health.
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