Argus analyst Marie Ferguson downgraded Crown Castle to Hold from Buy. The firm notes that the company’s Q1 FFO of $1.72 was down 10% from last year while forecasting the stock to continue to reflect sector rotation due to high interest rates and slower growth as industry-wide demand for wireless communications equipment remains sluggish, the analyst tells investors in a research note. Crown Castle also has not significantly entered the data center market, focusing on the U.S. market, and while the company added 8,000 new small cell antennae nodes in 2023, this segment is not projected to drive earnings enough to overcome struggling tower performance, the firm added.
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