Crown Castle shares drop following CEO change

Investing.com -- Shares of Crown Castle International Corp (NYSE:CCI) fell 3.4% after the company announced an immediate change in leadership, with the appointment of Dan Schlanger as interim Chief Executive Officer (CEO). The sudden termination of Steven Moskowitz as President and CEO prompted the Board to initiate a search for a new permanent CEO. The move comes amid the company’s ongoing transition to focus solely on its U.S. tower business.

The Board’s decision aligns with Crown Castle’s strategy to transform into a pure-play U.S. tower company, following the planned sale of its small cells and fiber solutions businesses. P. Robert Bartolo, Chair of the Board, expressed confidence in Schlanger’s ability to oversee the completion of the fiber transaction and ensure a smooth transition. The company reaffirmed its financial guidance and the sale of the fiber segment to EQT (ST:EQTAB) and Zayo, expected to close in the first half of 2026.

Schlanger, who will continue in his role as CFO until April 1, 2025, is set to become the Chief Transformation Officer once a new CEO is appointed. His responsibilities will include overseeing the sale of the company’s small cells and fiber solutions businesses. Despite the leadership upheaval, Crown Castle’s Board emphasized that Moskowitz’s termination was not due to any disagreement over financial performance or ethical concerns.

KeyBanc analyst Brandon Nispel commented on the unexpected leadership changes, stating, "We’re confused: Moskowitz was hired one year ago, CCI just announced a major strategic change with the Fiber sale, and the Company has a new CFO coming in. The timing here is particularly unusual... We generally think the business could run itself without key leadership in place. That said, we believe the musical chairs of leadership can’t be a good thing." Nispel maintains an Overweight stock rating and a $120.00 price target on Crown Castle, speculating that Bradley Singer, a current director on CCI’s Board, could be the replacement candidate.

BMO Capital Markets analyst Ari Klein reiterated a Market Perform stock rating and a $108.00 price target after the news, saying, "For now, we do not expect a strategy shift as CCI positions itself as the only pure-play US tower REIT, though the leadership transition adds uncertainty, and we believe valuation has already largely re-rated."

Investors appear to be reacting to the uncertainty surrounding the CEO transition, as leadership stability is often seen as a key factor in a company’s success. Crown Castle’s strategic focus on the U.S. tower market remains unchanged, and it is yet to be seen how the new leadership will influence the company’s trajectory.

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