CCI Stock Forecast & Price Target

Crown Castle is poised for positive financial performance with an expected increase of $35 million in Adjusted Funds from Operations (AFFO), driven by higher revenues, enhanced operational efficiencies, and a reduction in interest expenses. Additionally, the company anticipates a $25 million rise in Adjusted EBITDA, benefitting from increased rental revenue, decreased selling, general and administrative (SG&A) expenses, and improved service margins. The ongoing transition to a stand-alone tower operator, following the divestment of its fiber business by 2026, is expected to streamline operations and focus on core revenue-generating assets.

Crown Castle is facing significant financial challenges, as evidenced by a 5% year-over-year decline in site rental revenue, totaling $1.0 billion, alongside a 3% decrease in EBITDA, which amounted to $705 million. The company's concentrated customer base, with approximately 75% of revenue derived from the three major US carriers, amplifies risks amid industry consolidation and a slowdown in 5G deployment. Additionally, rising interest rates are contributing to increased refinancing costs, further exacerbating the company's financial strain and potentially hindering future growth.