BMO Capital analyst Ari Klein maintained a Hold rating on Crown Castle (CCI – Research Report) today and set a price target of $108.00.
Ari Klein has given his Hold rating due to a combination of factors related to Crown Castle’s recent performance and strategic positioning. The company’s first-quarter results exceeded expectations, with AFFOps and EBITDA figures surpassing consensus estimates, largely due to improved margins and cost-saving measures. However, much of this upside was attributed to timing factors, and the overall quarter was considered uneventful.
Despite the positive financial performance, uncertainties remain, particularly with the recent CEO termination and the ongoing repositioning of Crown Castle as a pure-play US Tower REIT. While the company is expected to benefit from increased carrier activity, there is a cautious outlook due to the pending fiber sale, which may take up to 12 months to close. As such, Klein remains on the sidelines, recommending a Hold rating as the company navigates these transitional challenges.
In another report released on April 22, Scotiabank also maintained a Hold rating on the stock with a $109.00 price target.