CCI Stock Forecast & Price Target

Crown Castle is poised for growth, with an expected increase of $35 million in Adjusted Funds From Operations (AFFO) due to heightened revenues, improved operational efficiencies, and a reduction in interest expenses. Additionally, the company anticipates a $25 million rise in Adjusted EBITDA, driven by increased rental revenues, lower selling, general and administrative (SG&A) expenses, and enhanced service margins. As Crown Castle transitions to a stand-alone tower operator with a significant revenue concentration from major U.S. mobile carriers, these financial enhancements position the company favorably for future performance.

Crown Castle faces significant headwinds due to rising interest rates and increasing refinancing costs, which could strain its financial performance as it prepares to divest its fiber business and operate solely as a tower operator. The company reported a decline in site rental revenue, falling 5% year-over-year to $1.0 billion, while its EBITDA also decreased by 3% year-over-year to $705 million, reflecting ongoing challenges in the market. Additionally, macroeconomic weaknesses, lower enterprise spending on new technology, and a slowdown in 5G deployment further exacerbate the uncertainties surrounding Crown Castle’s future revenue growth, particularly given its reliance on the Big Three U.S. mobile carriers for about 75% of its revenue.