CCI Stock Forecast & Price Target

Crown Castle's financial outlook is bolstered by an anticipated increase of $35 million in adjusted funds from operations (AFFO), attributed to higher revenues, improved operational efficiencies, and a slight reduction in interest expenses. Additionally, the adjusted EBITDA is expected to rise by $25 million, supported by increased rental revenue, decreased selling, general and administrative (SG&A) expenses, and enhanced service margins. The company’s strategy to divest its fiber business by 2026 while focusing on its core tower operations positions it favorably within the real estate investment trust sector, particularly given its reliance on the major U.S. mobile carriers for approximately 75% of its revenue.

Crown Castle's stock is facing a negative outlook due to several fundamental challenges, including rising interest rate risks which increase refinancing costs and a macroeconomic environment leading to lower enterprise spending on technology deployment. Additionally, the company's reliance on a concentrated customer base—75% of revenue generated from the Big Three US mobile carriers—exposes it to sector-specific risks, particularly amid increasing consolidation among carriers and a slowdown in 5G deployment. Financially, the company reported a decline in key metrics, with EBITDA decreasing by 3% year-over-year to $705 million, and site rental revenue falling 5% year-over-year to $1.0 billion.