Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - Wells Fargo (NYSE:WFC) has upgraded Crown Castle (NYSE:CCI), a prominent player in the Specialized REITs industry with a market capitalization of $49.6 billion, from Equal Weight to Overweight and raised its price target to $125.00 from $105.00. According to InvestingPro data, the stock is currently trading near its Fair Value.
The upgrade follows Crown Castle’s second-quarter results, which demonstrated that the company’s cost-cutting initiatives are progressing ahead of schedule.
Wells Fargo noted that these cost-reduction efforts provide upside potential to their 2025-2027 AFFO (Adjusted Funds From Operations) per share projections for Crown Castle.
The firm cited a "compelling relative valuation story" as part of its rationale for the improved outlook on the telecommunications infrastructure company.
Crown Castle has now become Wells Fargo’s top pick in the tower sector, according to the firm’s July 24 research note.
In other recent news, Crown Castle reported second-quarter earnings that surpassed analyst expectations, posting earnings per share of $0.67 against the estimated $0.48. The company’s revenue also exceeded forecasts, reaching $1.08 billion compared to the anticipated $1.04 billion, driven by a 4.7% organic growth in site rental billings. Following this robust performance, Crown Castle raised its full-year outlook, enhancing investor confidence. KeyBanc responded by increasing its price target for Crown Castle to $125, maintaining an Overweight rating, and noting the company’s improved guidance for core leasing and adjusted funds from operations per share. Similarly, Raymond (NSE:RYMD) James raised its price target to $124 while keeping a Strong Buy rating, highlighting the company’s better-than-expected U.S. Tower Leasing and cost improvements. JMP Securities reiterated its Market Outperform rating with a $125 price target, acknowledging Crown Castle’s potential recovery after a recent dividend cut. The dividend reduction had been partially offset by a $6.0 billion share repurchase program, concluding a significant restructuring phase for the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.