CCI Stock Forecast & Price Target

Crown Castle is experiencing expected increases in Adjusted Funds From Operations (AFFO) and Adjusted EBITDA, with AFFO projected to rise by $35 million due to enhanced revenue, operational efficiencies, and a slight decrease in interest expense. Furthermore, Adjusted EBITDA is anticipated to increase by $25 million, driven by higher rental revenue, reduced selling, general, and administrative expenses, and improved service margins. As the company moves towards becoming a stand-alone tower operator after divesting its fiber business by 2026, its focus on tower operations could strengthen its financial performance in the long term.

Crown Castle's negative outlook is primarily driven by rising interest rate risks, which are expected to increase refinancing costs, alongside macroeconomic weakness that is leading to reduced enterprise spending on technology deployment. The company has reported a decline in both EBITDA, which decreased by 3% year-over-year to $705 million, and site rental revenue, which fell 5% year-over-year to $1.0 billion, reflecting weakening demand in its core business. Additionally, the slowdown in 5G deployment and increasing consolidation among major carriers further exacerbate the challenges facing Crown Castle as it transitions to a stand-alone tower operator following the planned divestment of its fiber business.