Goldman Sachs Calls Crown Castle (CCI) the Largest Pure-Play US Tower Operator

Crown Castle Inc. (NYSE:CCI) is one of the top beaten-down REITs ready for a rotation rally. On June 26, Goldman Sachs analyst Michael Ng assumed coverage of Crown Castle Inc. (NYSE:CCI) with a Neutral rating and a $95 price target.

Ng’s note described Crown Castle as “the largest pure-play US tower operator,” a position the company has moved into after divesting its fiber and small cell business. Despite that scale advantage, the analyst flagged near-term pressure from lost revenue tied to EchoStar and DISH, alongside slower carrier leasing activity. These are headwinds likely to weigh on Crown Castle’s earnings results in the coming quarters, Ng stated.

Nonetheless, the analyst pointed out that the concerns are balanced by several longer-term supports for the stock, including rising mobile data demand, upcoming spectrum deployments by carriers, and ongoing cost-cutting initiatives at the company. The note also highlighted potential valuation upside tied to Crown Castle’s now lower-risk, US-only business profile, along with expectations for improving adjusted funds from operations, or AFFO, per share growth as current headwinds fade.

This assumption of coverage continues a pattern of caution from Goldman Sachs on the stock, which had already lowered its price target twice earlier in the year. For instance, the firm cut the target from $117 to $105 in January.

Crown Castle Inc. (NYSE:CCI) is a real estate investment trust. It owns, operates, and leases approximately 40,000 cell towers and approximately 90,000 route miles of fiber supporting small cells and fiber solutions across every major US market.

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