© Reuters. Crown Castle (CCI) organic growth moderating – BMO Capital
BMO Capital started shares of Crown Castle (NYSE:) at Underperform with a $113 price target in a note Thursday.
BMO analysts said that while the company has a solid position in the U.S. market, its organic growth is moderating.
“CCI, a domestic pure play, has a strong position in the U.S. market and is taking a differentiated approach to growth versus its tower REIT peers via fiber/small cells,” they explained.
“Small cells offer growth optionality, but at a far higher capital intensity and are still not a key carrier priority. With moderating organic growth, Sprint churn, and higher rates, we expect CCI’s AFFO/share to decline in 2024/2025 and lag peers.”
BMO expects CCI’s AFFO/share to decline -1.7%/-1.3% in 2024/2025, while they see AFFO/share decline in 2024/2025, with dividend growth minimal through 2025.
