Crown Castle stock rating upgraded to Outperform by BMO Capital

Published 19/08/2025, 10:54
Crown Castle stock rating upgraded to Outperform by BMO Capital

Investing.com - BMO Capital upgraded Crown Castle (NYSE:CCI), a prominent player in the Specialized REITs industry with a $43.7 billion market cap, from Market Perform to Outperform on Tuesday, while raising its price target to $120.00 from $115.00. According to InvestingPro data, the stock currently trades at $100.55.

The upgrade comes after Crown Castle’s decision to sell its fiber business, a transaction BMO Capital notes could take until mid-2026 to close. The firm views the risk/reward profile as favorable, with shares trading at 17.8x 2H26+1H27 AFFO/share. The company maintains a solid gross profit margin of 71.5% and offers an attractive dividend yield of 4.23%.

BMO Capital cited several positive factors supporting its more bullish stance, including an improved carrier activity backdrop and the recent appointment of a new CEO, which removes a previous overhang for the company.

The research firm also highlighted Crown Castle’s margin expansion potential as a key factor in its upgraded outlook for the telecommunications infrastructure company.

BMO Capital expects Crown Castle will continue to re-rate as a U.S. Tower pure-play, with $3 billion of post-close share repurchases providing additional support for the stock.

In other recent news, Crown Castle reported second-quarter earnings that exceeded analyst expectations, posting earnings per share of $0.67 against an estimated $0.48. The company’s revenue reached $1.08 billion, surpassing the consensus estimate of $1.04 billion, bolstered by a 4.7% organic growth in site rental billings. Following these results, Crown Castle raised its guidance for core leasing, services, and adjusted funds from operations per share. Wells Fargo (NYSE:WFC) upgraded Crown Castle’s stock rating from Equal Weight to Overweight, citing progress in the company’s cost-cutting initiatives. KeyBanc also maintained an Overweight rating and increased its price target to $125, reflecting the strong quarterly performance. Similarly, Raymond (NSE:RYMD) James raised its price target to $124, maintaining a Strong Buy rating, and highlighted improvements in U.S. Tower Leasing and costs. JMP Securities reiterated its Market Outperform rating and noted the company’s potential recovery following a significant dividend cut. These developments indicate a positive outlook from multiple analyst firms regarding Crown Castle’s recent performance and strategic direction.

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