After a Reuters article suggested EQT-backed Zayo and TPG are bidding on Crown Castle’s fiber/small cells assets, implying a $8B-$10B valuation, Wells Fargo said the firm believes the market was expecting greater than $10B and notes the valuation reportedly coming in “on the lighter side of expectations” is driving shares lower. However, the analyst adds that the firm wasn’t surprised that the valuation came in lighter based on recent checks of fairly limited demand for Crown Castle’s portfolio and keeps an Equal Weight rating and $100 price target on the shares.
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