Ari Klein, an analyst from BMO Capital, maintained the Hold rating on Crown Castle (CCI – Research Report). The associated price target remains the same with $98.00.
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Ari Klein has given his Hold rating due to a combination of factors surrounding Crown Castle’s recent strategic decisions. The company announced the sale of its fiber and small-cell business for $8.5 billion, slightly exceeding expectations, which positions Crown Castle as the only pure-play US Tower REIT. This move eliminates a previous overhang and could potentially lead to some multiple expansion.
However, there are concerns that offset these positive aspects. The company’s leverage is expected to increase, and there is a projected annual churn from Sprint that will persist through 2034, which could weigh on future performance. Additionally, while the dividend cut was anticipated, it still plays a role in the overall cautious outlook. These factors combined lead to the Hold rating, reflecting a balanced view of both opportunities and risks.