Will Wall Street analysts forecast an upward or downward trend for Crown Castle's stock?
Hitting New Heights:
CCI, with a staggering market cap of $45.6 billion, is a force to be reckoned with in the telecommunications world. Owning over 40,000 cell towers and approximately 90,000 miles of fiber, this Houston-based giant connects cities and communities across the nation, keeping them linked to essential data, technology, and wireless service.
Over the past 52 weeks, shares of this REIT have clawed their way ahead of the broader market, registering an impressive 8.9% rise. In stark contrast, the S&P 500 Index has managed only a 8.6% gain over the same period. Even more noteworthy, CCI's shares are up 15.4% year-to-date, while the S&P 500 Index is grappling with a 4.3% decline.
But, here's the kicker: While CCI has slightly outperformed the broader market, it has underperformed the Real Estate Select Sector SPDR Fund's (XLRE) 11.1% rise over the past 52 weeks.
Post the release of its Q1 2025 results on Apr. 30, CCI's stock prices saw a marginal increase. Quarterly net revenue for the company took a hit, declining 4.8% year-over-year to $1.1 billion, primarily due to a 5.3% drop in site rental revenue to $1 billion. Despite the decrease, total revenue surpassed street estimates of $1 billion. Adjusted Funds from Operations (AFFO) came in at a robust $1.10 per share, outshining the analysts' estimate of $1.02.
Looking ahead to fiscal 2025, CCI anticipates site rental revenue to range between $3.99 billion and $4.03 billion, with AFFO per share projected between $4.06 and $4.17.
For the current fiscal year, ending in December 2025, analysts predict a 43.7% year-over-year decline in CCI's adjusted FFO to $3.93 per share. However, this giant has proved its mettle with a strong earnings surprise history, consistently outperforming consensus estimates in the last four quarters.
As of now, out of the 19 analysts covering the stock, the consensus is a particular thumbs-up, with 8 giving it a "Strong Buy" rating and 11 issuing "Holds."
One of these analysts, Michael Rollins from Citigroup, bumped up CCI's price target to a whopping $124 while maintaining a "Buy" rating on May 5.
As we write this, CCI is trading below the mean price target of $113.94. The Street-high price target of $125 implies a potential upside of 19.3% from the current price levels.
Disclaimer: Sohini Mondal had no positions in any of the securities mentioned in this article at the time of publication. This article is for informational purposes only. Please refer to our Disclosure Policy for more details.
Sources: 1, 2, 3, 4
- Despite the decline in quarterly net revenue for CCI in Q1 2025, their Adjusted Funds from Operations (AFFO) came in at a robust $1.10 per share, surpassing analysts' estimates.
- Analysts predict a 43.7% year-over-year decline in CCI's adjusted FFO to $3.93 per share for the current fiscal year, ending in December 2025. However, this giant has a strong earnings surprise history, consistently outperforming consensus estimates in the last four quarters.
- As of now, the consensus among analysts covering CCI's stock is a positive one, with 8 giving it a "Strong Buy" rating and 11 issuing "Holds."
- One of these analysts, Michael Rollins from Citigroup, bumped up CCI's price target to an impressive $124 while maintaining a "Buy" rating on May 5, indicating a potential upside of 19.3% from the current price levels.
