Citi retains Buy on Crown Castle stock cites rate impact and strategic fiber review By Investing.com

On Thursday, Citi adjusted its outlook on Crown Castle (NYSE:) stock by reducing its price target from $132.00 to $126.00, though it retained a Buy rating. The adjustment followed Crown Castle’s first-quarter earnings report for 2024, which confirmed the company’s financial performance aligned with expectations, and its full-year financial outlook remained unchanged.

Crown Castle’s recent financial results showed solid performance in the first quarter of 2024. The company’s reaffirmation of its financial projections for the full year prompted Citi to update its valuation model, incorporating adjustments for timing while anticipating fiscal year 2024 results to be generally consistent with previous estimates.

The revision of the price target to $126 is attributed to the recent increase in rates, which has been factored into the valuation analysis. Citi’s commentary highlighted the impact of higher rates and the ongoing strategic fiber review as key factors contributing to the stock’s underperformance in the market.

Despite the challenges, Citi expressed confidence in Crown Castle’s potential to enhance the market value of its fiber operations. The firm also expects Crown Castle to sustain its long-term annual organic tower revenue growth in the mid-single-digit range, suggesting a positive outlook for the company’s future performance.

Citi’s stance on Crown Castle remains optimistic, with the belief that the company can navigate the current economic environment and capitalize on growth opportunities within its fiber operations, while maintaining steady revenue growth in its tower business.

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